EUR Sinks as Stronger Dollar Combines with Weaker Retail Sales

The EUR/USD pair is trading below 1.16 as the euro faces pressure from a strengthening US dollar and weak German retail sales data.

German retail sales fell 3.4% in July, their sharpest decline in over four years, while oil prices have risen above $90 a barrel due to escalating tensions between the US and Iran.

The European Central Bank (ECB) is expected to release inflation data on Friday, which could either support a rate hike or raise concerns about growth.