According to Brent Donnelly, President of Spectra Markets, the US dollar could strengthen in the days leading up to the Federal Reserve's interest rate decision on July 29th, as traders price in a certain probability of a rate hike from Fed Chair Kevin Wash.

He stated, "The market is convinced that Wash is serious about restoring credibility in the fight against inflation. Given the light positioning in the dollar and the higher likelihood of a hawkish tilt from this meeting, there is still room for the dollar to rise over the next seven days."

"I am short-term bullish on the dollar," he said.