The US dollar declined after the release of weaker-than-expected producer price index (PPI) figures and a surprise drop in the retail sales control group, indicating a potential cooling in demand. This economic data led to a decrease in Treasury yields and strengthened major foreign exchange pairs against the dollar. The EUR/USD pair tested resistance near 1.1566, while GBP/USD rose above 1.3133. Meanwhile, USD/JPY neared a critical support level at 155.94. Treasury yields fell across the board, with the 10-year yield at 4.015%. US equities displayed mixed performance, with chip stocks showing divergence as Nvidia and AMD declined, while Broadcom saw gains. The market is now pricing in less persistent inflation and a more dovish outlook.