Weak US Data Unravels Dollar as Fed Rate Hike Bets Evaporate

The US economic narrative flipped this week as a fourth consecutive soft data print finally broke the dollar's resolve. July retail sales plunged 0.6%—the steepest drop in over a year—while consumer sentiment cratered to 51, shattering the "resilient consumer" thesis that had underpinned Fed hawkishness. The greenback surrendered its range, with the Dollar Index (DXY) piercing below 100.00 for the first time since late June.

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