U.S. July retail sales unexpectedly fell 0.6%, far below expectations for a 0.1% increase, marking the largest decline in over a year, indicating a clear cooling in consumer spending. After the data release, the U.S. dollar index fell 0.3% to 99.667; market expectations for Fed rate hikes cooled, and traders reduced bets on additional hikes before 2027. Weak data may suggest slowing economic momentum, putting near-term pressure on the dollar. $USD is for informational purposes only and does not constitute investment advice.