Eurozone June retail sales -0.3% vs +0.1% m/m expected

Eurozone June retail sales unexpectedly fell 0.3% month over month versus forecasts for a 0.1% rise, signaling weaker consumer demand in the bloc. On a yearly basis, sales rose 0.7%, also below expectations for 1.0%, while the prior month’s figures were revised higher to +0.4% m/m and +1.9% y/y. The softer data may weigh on expectations for eurozone growth and reinforce concerns that domestic demand remains fragile. For EUR/USD, the release is mildly negative for the euro as it reduces near-term optimism around economic momentum and could support the dollar relative to the euro if markets interpret it as a drag on ECB policy normalization.