US dollar near ten-month highs against major currencies in expectation of FED’s decision

During Friday trade the US dollar was on its way towards 10 month high against a basket of major currencies, after the president of Federal Reserve Bank for San Francisco, John Williams, announced FEDs intention of a possible exit of the easing program by the end of this year. Most investors saw similarity between John Williamss statement and that of FEDs Chairman Ben Bernanke.

The dollar index, which gauges the strength of US dollar against a six major currency basket, increased by almost 0.4% to 83.886, closing in to a ten month high value of 84.094, achieved on Wednesday.

If the dollar index breaks through the peak value of 84.100 (July 2012), it could test the 84.919-84.930 zone. It was stated, that if FED scaled back the stimulus program, the index was likely to peak out near the current level.

EUR/USD was under pressure, trading close to session lows at 1.2806. GBP/USD was also losing on the day, trading at 1.5189.