The Federal Reserve released a report on Wednesday saying overall U.S. economic activity has expanded slightly since late February. The Fed's Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts, said ten out of twelve districts experienced either slight or modest economic growth.

A report released by the Mortgage Bankers Association on Wednesday showed a significant increase in U.S. mortgage applications in the week ended April 12th.

UK consumer price inflation softened less than expected in March but hit the lowest in two-and-a-half years on food prices, adding uncertainty to the timing of the first interest rate cut from the Bank of England. Inflation weakened to 3.2 percent in March from 3.4 percent in February, the Office for National Statistics reported Wednesday.

Consumer and producer prices from the UK and the euro area are due on Wednesday, headlining a light day for the European economic news. At 2.00 am ET, the Office for National Statistics releases UK consumer and producer prices for March. Consumer price inflation is expected to ease to 3.1 percent from 3.4 percent in February.

The value of the U.S. dollar is currently seeing modest strength on Tuesday after fluctuating earlier in the trading day.

Citing a "lack of progress" toward reaching the central bank's inflation goal, Federal Reserve Chair Jerome Powell suggested on Tuesday that interest rates are likely to remain higher for longer. Powell's remarks came during a moderated discussion with Bank of Canada Governor Tiff Macklem at the Washington Forum on the Canadian Economy.

The International Monetary Fund said on Tuesday that a resilient global economy is set for steady growth in the next two years as inflation returns to target gradually, but the growth will be uneven amid persistent risks. Global growth is set to remain at 3.2 percent this year and next, the same as in 2023, the IMF said in its latest World Economic Outlook.

A report released by the Federal Reserve on Tuesday showed industrial production in the U.S. increased in line with economist estimates in the month of March. The Fed said industrial production climbed by 0.4 percent in March, matching the upwardly revised advance in February.

After reporting a substantial rebound in new residential construction in the U.S. in the previous month, the Commerce Department released a report on Tuesday showing housing starts pulled back by much more than expected in the month of March. The Commerce Department said housing starts plummeted by 14.7 percent to an annual rate of 1.321 million in March.

The increase in the UK unemployment rate and the marginal slowdown in wage growth in the three months to February suggest an easing of pressure in the labor market. The ILO jobless rate rose to 4.2 percent from 3.9 percent in three months to January, the Office for National Statistics reported Tuesday. The rate was seen at 4.0 percent.

Germany's economic confidence strengthened more-than-expected to hit the highest in more than two years in April as investors anticipate the economy to pick up over the coming months amid the global recovery, survey results from the think tank ZEW showed on Tuesday. The ZEW Indicator of Economic Sentiment surged to 42.9 in April from 31.7 in the previous month. The reading was seen at 35.1.

China's economy posted a stronger-than-expected growth in the first quarter as strong exports on the back of weaker currency helped to counteract the downturn in the property market. Gross domestic product grew 5.3 percent on a yearly basis in the first quarter, the National Bureau of Statistics reported Tuesday. The growth rate exceeded both expectations of 5.0 percent and the previous quarter'

Unemployment from the UK and economic confidence from Germany are the top economic news due on Tuesday. At 2.00 am ET, the Office for National Statistics releases UK unemployment and average earnings data for February. The jobless rate is forecast to rise to 4.0 percent in three months to February from 3.9 percent in the preceding period.