The dollar index experienced a decline to 97.85 following the release of US retail sales data for July. The data alleviated concerns surrounding potential weakening in consumer spending, as sales increased by 0.5%. This uptick was propelled by automotive purchases and online promotions, building on the previous month's 0.9% rise. When excluding automobile sales, the increase still stood at 0.3%. Additionally, import prices saw a 0.4% increase, surpassing stagnant forecasts and heightening apprehension about potential inflation following Thursday's notable surge in producer prices.
Investor attention is now shifting to the forthcoming Trump-Putin meeting scheduled in Alaska, where uncertainties persist regarding a potential ceasefire in Ukraine. Market participants are also keenly awaiting the Jackson Hole symposium next week for indications of the Federal Reserve's policy direction. The Fed is currently navigating a complex landscape where tariff-induced inflation pressures confront emerging signs of weakness in the labor market. For the week thus far, the dollar has depreciated by 0.3%, on the heels of a 1% decline in the previous week.
