Dollar Dips as Fed Hike Bets Ease Amid Weak US Data

What happened

The dollar fell after weak US retail sales data reduced expectations for a Federal Reserve rate hike next month. Treasury yields dropped, with the 2-year yield at 4.15% and the 10-year at 4.68%. Oil prices reversed gains to around $88.55 a barrel. Geopolitical tensions rose as Israel killed 11 people, including a senior Hezbollah commander, in southern Lebanon. Asian stocks were little changed, while US futures advanced.

Why it matters

Weaker US data and easing Fed bets could signal a slowdown in the US economy. Geopolitical risks, specifically the conflict between Israel and Hezbollah, continue to weigh on global investor confidence and market sentiment.