The dollar index fell 0.27% on Friday after weak US retail sales and consumer sentiment reports reduced the odds of a September Fed rate hike to 32% from 35% on Thursday. July US retail sales fell 0.6% month-over-month, much weaker than expectations of a 0.1% gain, while the University of Michigan's preliminary August consumer sentiment index dropped 4.2 points to 51.0, below the expected 55.0. The euro rose 0.34% against the dollar as markets price a 92% chance of an ECB rate hike in September, far exceeding the Fed's 32% odds. The yen slipped 0.08% against the dollar, with markets now discounting an 81% chance of a BOJ rate hike at the September 18 meeting, up from 63% on Wednesday. October gold closed up 16.40 dollars, or 0.37%, and September silver rose 0.115 dollars, or 0.18%, supported by the weaker dollar and safe-haven demand after reports that Iran attacked two ships in the Strait of Hormuz.
