Towards the end of the week, the US dollar lost the strengthening momentum it maintained before when it showed a decline on Thursday yesterday.
The market is digesting the published PMI data in assessing the health of economic activity for the month of October.
Manufacturing and services sector PMI data showed excellent readings for Europe with Germany's largest economy PMI figure recording an increase over the previous month and forecasts.
The Euro currency is starting to regain its strength to bounce back from its recent 3-month lows.
Meanwhile, the UK PMI is 'red' when the numbers are slightly lower for this latest month, but both sectors still show signs of expansion that are above the 50 point level.
The pound also recovered slightly after 4 consecutive weeks of falls to hit a 10-week low.
The United States (US) PMI did not show significant changes compared to the previous month, failing to provide an additional injection for the US dollar.
Despite showing a change in direction, analysts still expect the US dollar to continue strengthening after this due to factors that are still directed towards the Federal Reserve's (Fed) monetary policy ahead of the November meeting.
It is possible that profit taking activities by market players occur earlier before the closing trades of the week.
The indicator for the US dollar also shows a signal for a price correction with the dollar index (DXY) dropping to 104.10 points while the US 10-year treasury yield hovers around 4.20%.
The focus of the market in the New York session today is on Canadian retail sales data that will influence the Canadian dollar currency whether it will continue to depreciate or otherwise.
