By | January 26 2010 6:56 AM

There will be expectations of slightly firmer Fed rhetoric at Wednesday's interest rate-setting meeting which will provide some dollar support. It will still be difficult to secure strong dollar support on yield grounds, especially with speculation that Bernanke will pledge low rates to gain Senate backing. Underlying sentiment towards the Euro-zone is liable to remain very fragile which will hamper the Euro as structural fears persist. The net risks still look to be for a slightly firmer US currency and a move to the 1.40 zone over the next 24 hours.