Flash GDP estimate from the euro area is the top economic news due on Wednesday, headlining a light day for the European economic news. At 2.45 am ET, France's statistical office INSEE is set to publish final inflation figures for April. Consumer price inflation is seen at 2.2 percent, unchanged from the flash estimate.

The U.S. dollar weakened against other major currencies in the Asian session on Wednesday.

The New Zealand dollar strengthened against other major currencies in the Asian session on Wednesday.

The Australian dollar strengthened against other major currencies in the Asian session on Wednesday.

European stocks may open on a positive note Wednesday, with trading later in the day likely to be influenced by the release of key U.S. CPI data along with other reports on U.S. retail sales and homebuilder confidence.

With gold reaching near-record highs and witnessing a surge in demand for gold ETFs worldwide, it has become a focal point. However, amidst this bullish momentum, year-to-date net outflows of $5.4 billion suggest a nuanced market sentiment, indicating that some investors are taking advantage of the elevated prices.

The BoJ and MoF appear to be at odds regarding further policy rate hikes. While the MoF sought the BoJ's exit from the negative interest rate policy to advance its goal of implementing a stringent fiscal policy, the prospect of additional rate hikes poses challenges for the government.

The benchmark US 10-Year Treasury yield tumbled to 4.44% from 4.50% yesterday following a downward revision in US March Producer Prices. While April’s US PPI rose 0.5%, March’s PPI was revised down to -0.1% from 0.2% previously.

gold prices rebounded strongly on the back of the softening U.S. dollar, while oil prices remained steady.

This Forex Market Report offers an overview of critical economic and financial events that impact the global forex markets. Traders should closely monitor developments to fine-tune their trading strategies accordingly.