Dollar falls on Fed's dovish hold

The greenback fell against its peers in post-FOMC on Wednesday as the central bank hinted the economic recovery is on track and did not set a timeline for tapering Fed asset purchase.  
  
Reuters reported the U.S. economic recovery remains on track despite a rise in coronavirus infections, the Federal Reserve said on Wednesday in a new policy statement that remained upbeat and flagged ongoing discussions around the eventual withdrawal of monetary policy support.    "With progress on vaccinations and strong policy support, indicators of economic activity and employment have continued to strengthen," the U.S. central bank said in a statement after the conclusion of its latest two-day policy meeting.      
The Fed kept its overnight benchmark interest rate near zero and left unchanged its bond-buying program.  
  
Versus the Japanese yen, dollar edged up to 109.91 in Asian morning before retreating to 109.74 ahead of European open. Intra-day ascent then accelerated in Europe in tandem with US yields and price rose to 110.22 in New York morning. Later, the pair spiked to session highs at 110.28 but only to retreat to 109.85 on broad-based usd's weakness in post-FOMC trading.  
  
The single currency edged up to 1.1827 in Asian morning before retreating to 1.1803 in early European morning. Despite gaining to 1.1829, price retreated to 1.1784 in early New York morning before staging a rebound. Later, despite a spike down to session lows of 1.1773 in post-FOMC, euro then erased intra-day losses and rallied to a near 2-week high of 1.1849 on usd's selling after Fed's dovish hold.  
  
The British pound traded sideways in Asia before rebounding from 1.3865 ahead of European open to 1.3895 in early European morning. Cable then retreated to 1.3845 in New York morning in tandem with euro before rebounding to 1.3888. Later, despite a sharp drop to session lows of 1.3844 on usd's strength in post-FOMC, cable then quickly erased intra-day losses and rose to a 2-week high of 1.3910 on the Federal Reserve's dovish hold.  
  
Data front news from Reuters, the U.S. trade deficit in goods increased in June as imports continued to rise amid an acceleration in economic activity, suggesting trade likely remained a drag on growth in the second quarter.    The goods trade deficit increased 3.5% to $91.2 billion last month, the Commerce Department said in Wednesday. The report was published ahead of Thursday's advance second-quarter gross domestic product data.  
  
Data to be released on Thursday:  
  
New Zealand NBNA business outlook, NBNZ outlook activity, Australia export prices, import prices, U.K. nationwide house price, France producer prices Germany unemployment change, Italy producer prices, EU business climate, economic sentiment, industrial sentiment, services sentiment, consumer confidence, Germany CPI, HICP, U.S. GDP, PCE prices, initial jobless claims, continuing jobless claims, pending house sales and Canada average weekly earnings.