Dollar Retreats Amid Doubts Fed Will Raise Interest Rates in 2016

Aside from the potential for Monday's United States presidential debate having a big impact on the election, "there's really nothing on the horizon until earnings season, and the Fed has kind of cleared the way for accommodative policy and low interest rate environment which bodes well for stocks", said Alan Lancz, president of investment advisory firm Alan B. Lancz & Associates in Toledo, Ohio. They aren't too concerned about the strength of the economy in a sense that a weaker economy will likely mean the Fed will remain cautious about raising rates.

The Fed on Wednesday opted to wait for more evidence of progress toward its goals.

European markets followed Asia's lead, with Britain's FTSE 100 climbing 1.3 percent and Germany's DAX and France's CAC 40 both jumping nearly 2 percent ahead of what was expected to be a third day of gains in NY.

Russ Koesterich prefers to go bullish on gold despite its low volatility.

Crucially, the Fed also projected a less aggressive rise in rates next year and in 2018, fanning expectations bond yields will stay low in the foreseeable future.

So, it's no wonder that investors are moving toward stocks and gold rather than paying interest for their own money.

Before that also comes the uncertainty of USA elections, added GAM's Hatheway.

But that hardly changed the market's perception on the outlook of the Fed's policy, with interest rate futures pricing in roughly a 60 percent chance of a rate increase by December, little changed from before the Fed meting. Brent crude, used to price Global oils, fell 44 cents to $47.77 a barrel.

The yield on the U.S. Treasury 10-year note fell to 1.62% on Thursday from 1.67%.

The Dow Jones Industrial Average climbed 115 points, or 0.6%, to 18409 and the S&P; 500 advanced 0.5%.

USA benchmark crude rose 98 cents to $46.32 a barrel.

Commodities were mostly higher, with the November crude oil contract gaining 98 cents at US$46.32 per barrel, December gold contracts increasing by US$13.30 at US$1,344.70 per ounce and the December contract for copper up four cents to $2.19 a pound.

The Fed hints at a rate hike in December, global stocks rally, oil rises and gold climbs.

"We do not feel that the dollar has the wherewithal to make a more concerted run higher in the next few weeks", he added.

The US official interest rate stays at 0.5%, where it has sat since December a year ago.

Shares of Lennar rose 1.4% after the company announced it would buy WCI Communities, a move that combines two of the largest home builders in Florida as the housing recovery continues.

Low rates and efforts by central banks to bolster economic stimulus are driving demand for gold as a store of value.

JPMorgan rose 0.5 percent and was the top boost on the S&P; financial index .SPSY after striking a deal with Wal-Mart to process payments.

The S&P; 500 index showed two new 52-week highs and no new lows, while the Nasdaq recorded 19 new highs and five new lows.