US Dollar Index weakens as retail sales decline
The US Dollar Index has lost momentum, trading near 99.50, after US retail sales unexpectedly fell 0.6% in July.
The decline in retail sales, along with softer inflation data, has reduced expectations of a Fed rate hike in September.
Traders now see a 31% probability of a September hike, with a 69% chance of a rate increase by December.
The US conflict with Iran and efforts to open the Strait of Hormuz will be closely monitored by traders.