US Dollar Mostly Rangebound as Traders Look for Direction

US dollar is mostly rangebound today, turning in a mixed performance as traders look for direction and speculation about what’s next for the Federal Reserve raises questions about what’s next.

US dollar is mixed today, thanks in large part to speculation about what’s next from the Federal Reserve in terms of economic stimulus and exit from quantitative easing measures.
Recent economic data showed an increase of 0.1 per cent in retail sales for April, indicating that the US economy is recovering. Add to that the encouraging employment data recently released, and it appears as though the economy might be on the right track.
If the economy is improving, though, that means that the Fed could decide to exit its stimulus plan, and that might mean a strengthening US dollar. However, that course of action is far from set in stone. Indeed, there are questions about whether or not the United States can maintain its recent economic gains with the budget sequester in place. Plus, there are other factors that seem to be helping other currencies right now.
At 15:32 GMT US dollar remains mixed, and little changed. EUR/USD is up to 1.2973 from the open at 1.2971. GBP/USD is down to 1.5298 from the open at 1.5356. USD/CAD is down to 1.0111 from the open at 1.0120. USD/JPY is down to 101.7815 from the open at 101.8950.

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