Euro Falters as Strong Dollar and Weaker Retail Sales Take Toll

The EUR/USD is trading below $1.16 due to the strengthening US dollar and weaker German retail sales, which fell by 3.4% in July.

This decline is the sharpest in over four years and raises questions about the strength of the German consumer at a time when inflation is expected to accelerate to 3.3% in August from 2.9%.

The rise in oil prices, which has surpassed $90 a barrel for the first time in six months, also puts pressure on the eurozone economy.