USD Steady as Retail Sales Match Estimates; Tech Selloff Weighs on Sentiment

The US dollar traded mixed against major pairs as June retail sales came in line with expectations, offering no fresh catalyst for directional moves. US initial jobless claims printed at 208K, below the 217K estimate, signaling continued labor market resilience. However, risk sentiment was dampened by a sharp tech sector selloff, with reports of Google's Gemini launch delays adding to negative momentum. May business inventories rose 0.3% as expected, while pending home sales for June disappointed significantly at -5.4% versus the -0.5% forecast, highlighting persistent weakness in the housing sector. Fed Governor Logan noted that AI-driven investment demand poses near-term inflationary risks, while Fed's Schmid acknowledged encouraging inflation data but cautioned it was too early to draw conclusions. The divergent Fed commentary left rate expectations largely unchanged. Traders should monitor upcoming housing and inflation data for clearer directional cues, as the mixed macro picture keeps the dollar range-bound against most counterparts in the near term.