The Federal Reserve kept its interest rate target unchanged at below 0.50%, but sounded more cautious than expected, cutting its inflation and unemployment forecasts for the next three years and asserting the global risks facing the American economy, which allayed investors' fears of invasive and repetitive rate hikes in the near future, rallying risk assets across the globe.

Wall Street closed at its highest levels this year, with S&P 500 rising 11 points, or 0.56% to end at 2,027, while Dow Jones Industrial Average climbed 74 points, or 0.43% to close at 17,325. NASDAQ Composite led the day higher, advancing 35 points, or 0.75% to end at 4,763.

Commodities rallies as well, with oil prices surging six percent on Wednesday and extending their gains today. Brent crude futures rose 40 cents, or more than one percent to trade at $40.75 a barrel, while U.S. West Texas Intermediate (WTI) gained 70 cents, or two percent to hover around $39.23 a barrel.

The dollar suffered wide losses, with its index falling to one-month low at 95.52, down 0.20% on the day, while tumbling 0.70% against Japan's yen to hover around 111.80. The euro edged up to one-month high at 1.1258, before last trading at 1.1237, up 0.11% on the day.

Investors wait today for the Bank of England's periodic meeting, expected to leave interest rates unchanged at their record low of 0.50%, and its assets purchases program intact as well, while analysts will pore over the official statements to get clues about the bank's future monetary path.

U.S. unemployment claims on the other hand are forecast to have risen to 267 thousand last week from the previous reading's 259 thousand, which would be further negative news for the struggling American dollar.