The US dollar began to show a recovery in trading on Thursday after several days of weakness due to concerns that the market will turn to President Donald Trump's massive tax cut plan.
Concerns are growing after the downgrade of the US government's credit rating by Moody's as the national debt has reached $36 trillion.
The "Big, Beautiful Bill" for spending and tax cuts is awaiting approval from the US House of Representatives after receiving Congressional approval.
The US dollar showed a recovery towards the end of this week following a positive report of PMI data published in the New York session yesterday.
Both readings for the US manufacturing and services sectors for May rose above expectations, each coming above the 50 mark.
The US manufacturing PMI managed to record 52.3 points after contracting below the 50 mark in the previous month.
This shows signs of expansion in a key sector in the US, again reducing concerns about the world's largest economy.
This is in contrast to the similar data published for Germany and the UK in the European session which showed slightly gloomy readings.
The Euro and Pound currencies performed less well while the US dollar was recovering.
The focus at the end of this week will be on the UK retail sales data in the European session and Canadian retail sales in the New York session.
