The gains in the currency market over the past few weeks have been impressive, but ultimately they are still classified as corrective and the US Dollar will once again emerge…

Did the Fed meet the market’s expectations for greater accommodation? A forecast of virtually-zero interest rates through the end of 2014 does not have the same level of amperage that a wholesale asset purchasing program (long ago given the moniker ‘QE3’) would. The masses seem to be slowly coming to terms with the reality that perhaps the Fed short of expectations in its ‘hand-sitting’ approach.

The world’s largest economy is expected to expand at a faster pace in the fourth quarter and the GDP report may increase the appeal of the USD as the development dampens the scope for additional monetary easing.

Market sentiment continued to pick up on Thursday amid the FOMC’s pledge to retain a zero interest rate policy well into 2014, but the rise in risk-taking behavior may be short-lived as the sovereign debt crisis comes back into focus.

Higher yielding currencies, risk-correlated assets, and precious metals are all up big on the day as the Federal Reserve’s ultra-dovish monetary policy outlook has destroyed the U.S. Dollar.

Gold and silver prices may be on the cusp of another major upswing as the Fed compounds its dovish stance even as growth improves, stoking inflation bets.

The US Dollar is hoping for another bout of Eurozone-driven risk aversion to find fuel for an advance in the aftermath of an overwhelmingly dovish FOMC outcome.

While our core bias still remains grossly constructive on the US Dollar, even in the face of the most recent developments, we look for a little more Greenback weakness…