US Retail Sales Contraction Triggers Greenback Selloff

The US retail sales data for July showed a contraction of 0.6% month-over-month, according to the US Census Bureau. This reversal comes after a 0.2% expansion in the previous month and is also below market expectations of a 0.1% increase.

On a yearly basis, retail sales were up 5.0%, but the monthly decline is a concern for economists and investors. The total sales for the May-July period are up 6.3% from the same period last year.

The release of this data has led to losses in the US Dollar Index (DXY), which has returned to the 99.50 region after Thursday's slight pullback.