GBP/USD Hits 1.3560, EUR/USD Tops 1.15 as Weak US Retail Sales Sink Dollar

The US dollar came under broad selling pressure following a sharp 0.6% decline in retail sales, driving GBP/USD to 1.3560 and EUR/USD above the 1.15 handle. Consumer sentiment deteriorated to 51.0, reinforcing concerns about slowing economic momentum and prompting traders to scale back Federal Reserve rate hike expectations. Gold surged toward $4,400 per ounce as the weakening dollar and reduced hawkish Fed pricing boosted safe-haven and alternative asset demand. The combination of soft consumption data and declining sentiment suggests the Fed may hold rates steady at upcoming meetings, further undermining dollar support. GBP/USD faces immediate resistance near the 1.3600 psychological level, while EUR/USD could target 1.1550 if dollar weakness persists. Support for GBP/USD sits around 1.3500, with EUR/USD finding a floor near 1.1480. Traders should monitor upcoming US inflation and employment data for further confirmation of the economic slowdown narrative. The dovish repricing of Fed expectations may continue to weigh on the greenback in the near term.