Fed chair Janet Yellen testimony was generally failed to generate big headlines, says Saxo Bank head of FX strategy John Hardy.

The testimony was seen as hawkish and increased expectations of a Fed rate hike, adds Hardy.

If the Fed does hike rates in March there will be a frequency issue, one way out of this would be using the March meeting as a setup meeting for a May hike, says Hardy.

It’s less about Fed guidance and more about incoming data and the Trump administration’s policy mix, according to Hardy.

We’ve seen the dollar strengthening after Yellen's testimony, he says.

At some point a hawkish Fed will put the brakes to risk appetite - just not yet. The US 10-year yield is a key parameter for when the Fed will take action.

For now look out for how impact of risk appetite and dollar strength, Hardy concludes.