U.S. retail sales in July unexpectedly fell 0.6% month-on-month, far below the market expectation of a 0.1% increase. Combined with the initial August reading of the University of Michigan consumer sentiment index dropping to 51.0, signals of a slowdown in the U.S. economy were further reinforced. In response, the U.S. dollar index came under pressure and fell to around 99.6. The euro rose to about 1.1570, its highest level since mid-June, while the pound sterling against the U.S. dollar touched 1.3561, the highest since May 12. The market-implied probability of the Federal Reserve raising rates in September has since fallen to around 31%. Near-term weakness in the dollar may provide support for non-U.S. currencies. For information only and does not constitute investment advice.