** New Fed Chair Janet Yellen voiced support for the Fed's Taper program but tempered rate hike hopes
** A status quo Fed doesn't project crisis for risk trends...but neither does it support a new rally
** In Wednesday's session, the BoE Quarterly Bulletin presents a heavy potential GBP catalyst
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New Fed Chair Janet Yellen was in the hot seat this past session, and what she said seemed to lift the S&P 500 and keep the pressure on the dollar. Yet, was this a true reflection of new fundamental developments or merely an extension of trends? The central bank chief voiced her support for the Fed's Taper approach, while simultaneously defusing any early fear / speculation of impending rate hikes. That is a distinct continuity of the Bernanke course. The Taper is not a dramatic market-mover, but it does slowly erode the fundamental support for 'risk-on' while lifting US rates. The risk theme tied to the Fed's bearings is a concern to keep in the fundamental mix; but in the meantime, the upcoming BoE Quarterly Inflation report threatens immediate volatility for GBPUSD and other sterling pairs. We discuss the big themes and near-term volatility events in today's Trading Video.