The euro turned modestly higher on Tuesday in New York, erasing recent losses against other major rivals. Traders started to show more confidence the higher-yielding currencies.

European Central Bank policymaker Ewald Nowotny said the central bank would take all available measures to stabilize the inflationary expectations in the euro area and keep them anchored in the positive terrain.

The euro turned higher against the U.S. dollar and climbed away from a six-day low. After hitting as low as 1.2963 in the early morning, the single currency reached as high as 1.3087 in the late morning.

In the U.S., a Conference Board report showed that the consumer confidence index jumped to 39.2 in April from an upwardly revised 26.9 in March. Economists had expected the index to increase to 29.7 from the 26.0 originally reported for the previous month.

The single currency was little-changed amid choppy trading versus the sterling, moving near 0.8940. The euro had reached a three-week high of 0.9081 earlier in the session.

The latest Distributive Trades Survey from the Confederation of British Industry showed that 44% of retailers reported annual rise in sales volume, while 41% registered fall, resulting in a positive balance of 3% for the first half of April. This was the highest balance since January 2008.

Elsewhere, Bank of England Executive Director for financial stability, Andrew Haldane said more widespread implementation of central counterparties and intra-system netting arrangements are needed to ensure that the financial network is structured so as to reduce the chances of future systemic collapse.

The euro climbed away from a seven-week low of 124.37 against the yen. The European currency climbed above 126.08 by mid-day.

On the economic front, a preliminary report from the German statistical office showed that consumer price annual inflation rose to 0.7% in April from 0.5% recorded in March. On a monthly basis, the consumer price index, or CPI, was flat. Economists had forecast the CPI to climb 0.8% annually and 0.1% month-on-month. The preliminary report is based on information from six Länder.

Meanwhile, results of the monthly consumer confidence survey conducted by the French statistical office INSEE showed that the sentiment indicator rose to minus 41 in April from a revised minus 42 in March. Economists had expected the indicator to log minus 43, which was the initial estimate for March.

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