DAX in Germany traded 0.1% higher, the CAC 40 in France rose 0.3% and the U.K.’s FTSE 100 gained 0.1%. Johnson & Johnson (NYSE:JNJ) has delayed the rollout of its Covid-19 vaccine outside the U.S. after the U.S. federal health agencies recommended pausing the use of the drug due to blood clotting worries. LVMH (PA:LVMH) stock climbed 2.8% to a record high after the world's biggest luxury goods company posted a strong start to 2021 as Chinese and U.S. shoppers returned in droves. Christian Dior (PA:DIOR) stock rose 3.1% after reporting an 8% rise in sales, which also helped rivals Kering (PA:PRTP) and Hermes (PA:HRMS) higher. SAP (DE:SAPG) stock rose 3.4% after the German software giant raised its 2021 revenue outlook, while plastics company Covestro (DE:1COV) stock rose 2.4% after the plastics company lifted its profit outlook. Tesco (OTC:TSCDY) stock fell 3.2% after the U.K. supermarket chain reported a 20% drop in full-year pretax profit, while Credit Suisse (SIX:CSGN) stock fell 1.9% as the banking giant continued to unwind positions related to last month's meltdown of Archegos Capital. Oil prices pushed higher Wednesday after industry data showed U.S. oil inventories declined more than expected last week, a sign of growing demand in the largest oil consumer in the world. U.S. crude futures traded 1.4% higher at $61.05 a barrel, while the Brent contract rose 1.3% to $64.48. Gold futures fell 0.1% to $1,745.20/oz.

GBP/USD pair is extending the upside momentum in the early European session, touching the highest level in three days near 1.3775. Looking at the technical picture, a sustained strength beyond 200-hour SMA, around the 1.3780 region might be seen as a trigger for intraday bullish traders. That said, a modest US dollar rebound from three-week lows – amid a modest pickup in the US Treasury bond yields – might cap gains for the GBP/USD pair. The EUR/USD pair’s ability to stay strong beyond 200-day SMA, backed by the strongest bullish MACD signals since early December 2020 suggests the quote’s further upside. Though, a clear run-up past-50-day SMA level of 1.1965 becomes necessary for the EUR/USD buyers before confronting a horizontal area comprising multiple levels marked in March, around 1.1988-95. Meanwhile, a daily close below the 200-day SMA level of 1.1906 can recall EUR/USD sellers targeting the early March low near 1.1835. The dollar index was down 0.2% at 91.683, falling to its lowest level since March 22. USD/JPY fell 0.2% at 108.83, touching its lowest level in three weeks, while the risk-sensitive AUD/USD rose 0.5% to 0.7676. The U.S. consumer price index jumped 0.6% in March versus the previous month, the largest gain since August 2012, and rose 2.6% from a year earlier, both 0.1 percentage points above market expectations. While these figures were above consensus expectations, there were some in the market that expected a sharper rise in inflation given the extent of pent up demand on the back of hefty fiscal stimulus and a successful vaccination program.