GBP rose against USD and CHF in the European session on Tuesday, as investors' risk appetite improved as several countries in Europe and some states in the U.S. are beginning easing restrictions imposed to fight the coronavirus. The pound, however, was little changed against other major currencies.

Investors are also awaiting the announcements of the outcomes of the policy meetings of the Federal Reserve (due on Wednesday) and European Central Bank (due on Thursday), at which the central bankers are expected to expand stimulus to help their coronavirus-hit economies.

Meanwhile, market participants ignored the latest CBI's survey of the UK's retailers, which showed a deeper-than-forecast contraction in retail sales volumes in April. According to the CBI, retail sales volume balance stood at -55 in the year to April, sharply down from -3 in March. That was the steepest fall in sales since December 2008. Economists had forecast the reading to decrease to -40. The survey also revealed the retailers expect a similar pace of decline in annual next month, - the weakest expectations in the survey history.