Dollar Slumps on Surprise Retail Sales Decline as Rate Hike Odds Plummet

The US dollar fell on Friday after data showed a surprise decline in retail sales in July. The dollar index dropped 0.33% to 99.59, with the euro up 0.36% at $1.1568.

Retail sales declined by 0.6% last month, compared to an unrevised gain of 0.2% in June. Economists had forecast a 0.1% increase in retail sales, which are mostly goods and not adjusted for inflation.

Juan Perez, director of trading at Monex USA, said the data indicated 'clear signs of poor consumption' and an economic slowdown in the US.