GBP depreciated against its major rivals in the European session on Tuesday, weighed down by surging coronavirus cases globally and growing concerns about the pace of economic recovery due to tougher COVID-19 rules.

According to Johns Hopkins University, the confirmed global COVID-19 cases across the world have risen to 85.77 million, while the number of deaths from the coronavirus has grown to near 1.86 million. 

On Monday, the UK's Prime Minister (PM) Boris Johnson announced the third national lockdown in England to contain a new more contagious variant of the virus. The restrictions include the closure of the schools and the order for the public to stay at home except for essential purposes. The lockdown is scheduled to last until at least February 15.

In order to cushion the damage from coronavirus, the UK's finance minister Rishi Sunak announced a GBP4.6 billion fresh financial support package for the struggling UK's businesses on Tuesday. He also pledged to lay out the next steps on virus support measures at the March budget. 

It is also expected that Germany will announce the extension of its lockdown measures later today. According to media reports, the current lockdown will be continued until January 31.

Investors are also awaiting the outcome of today's crucial Senate election runoffs in Georgia, which will determine whether the Democrats take control of the U.S. Congress as well as the fate of President-elect Joe Biden's legislative agenda.