Forex morning brefing 26/7/17

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Dollar on the rise ahead of the FOMC Rate Decision today - will gains last?

The US Dollar is gaining against its peers ahead of the Federal Reserve Rate Decision today with Dollar bulls looking for Fed's optimistic views to bolster confidence in the US currency. Nevertheless, the string of recent data from the US economy has been less than exciting and comes in contrast with Janet Yellen's optimism over the progress of the economy and Fed's plans to tighten their policy again before the end of the year. This leaves investors baffled and unsure whether the Fed will be able to pull the trigger again within 2017 unless data improves and we see a consistency in the reports to come.

The important question in our mind this morning is whether the Dollar will be able to sustain this momentum after the Fed event this evening. Unfortunately for the Dollar bulls the recent price action suggests that the gains will be temporary and investors will need some concrete data before they put their money behind the Dollar. The next important release from the US is the NFP report which comes early next month so it's likely that the Dollar will see some more weakness following today's release.