The U.S. dollar fell for a short time before rising significantly after U.S. retail sales rose less-than-expected in August, but the July reading was revised higher, bolstering strong economic growth outlook for the third quarter of 2018.
Retail sales hit a six-month low in August; with import prices posted the biggest drop in more than a year and a half in August. Retail sales rose by 0.1% on monthly basis, while July's reading was revised up to 0.7% from 0.5%.
Signs of cooling in consumer spending and inflation will not change the Fed's view of raising interest rates at the end of this month, and the Federal Reserve has raised interest rates twice so far this year.
Sterling continued to rise and headed for its second biggest weekly rise in 2018, reaching its highest level in almost a month and a half at 1.3143. The British currency has become increasingly linked to risk appetite during the last weeks, regardless of news from Brexit negotiations.
