German retail sales declined by 3.4% month-on-month in July, significantly underperforming market expectations of a 0.4% increase, according to FX Street.
The data for June was also revised upwards to show no change (0%), improving from an earlier estimate of a 1.1% decline. This suggests a more stable retail environment in June before the sharp drop in July.
For Japanese investors and traders, this weaker German retail performance adds to cautious sentiment around European consumer demand, which could influence FX and equity markets, particularly the euro and export-focused equities.