Euro Faces Pressure from Stronger Dollar and Weaker German Retail Sales

The euro is facing pressure from a stronger U.S. dollar and weaker German retail sales, which fell 3.4% in July, their sharpest decline in over four years.

This comes as inflation expectations are on the rise ahead of Eurozone data release this month. A hotter reading would strengthen the case for an ECB rate hike, although higher oil prices could be a problem for growth rather than a reason for tighter policy.

Brent has risen over 6% from last week's lows, reaching above $90 per barrel due to escalating tensions between the U.S. and Iran.