The previous strengthening of the US dollar was hampered by the latest US economic data that came with gloomy readings.
In the New York session on Thursday, US retail sales data was published with a reading for December recording a decrease to 0.4%, lower than the forecast of 0.6%.
The core sales reading increased to 0.4% but did not reach the expected 0.5%.
This has disrupted the momentum of the US dollar's strengthening which is seen starting to weaken for trading towards the end of the week.
In addition to being alert for profit-taking activities in the usual trading at the end of the week, investors are also cautiously awaiting the inauguration ceremony of Donald Trump as the 47th US President next week.
However, market analysts maintain a positive outlook for the US dollar which is still seen to have an advantage in the market based on signals from the last FOMC meeting of 2024, last December.
Investors will learn the outcome of the first FOMC meeting of 2025 at the end of January after assessing key indicators in the latest NFP employment data and consumer inflation (CPI) that have been published.
With the current situation likely to see the US dollar in a temporary slump, other major currencies in the market will try to take advantage of the opportunity to recover their respective values.
