GBP appreciated against its major rivals in the European session on Tuesday as Monday's promising Pfizer-BioNTech COVID vaccine news raised hopes for a workable treatment to the disease, which has plunged the world economy into a crisis this year. The availability of the coronavirus vaccine is seen as crucial for the full global economic recovery. 

Meanwhile, Brexit uncertainty persists, although hopes for the EU-UK trade deal were raised after the UK’s House of Lords rejected the government’s Internal Markets bill, an obstacle that might have the EU from signing off on a trade deal with the UK. Adding to the optimism, the UK finance minister Rishi Sunak said on Monday that both sides made progress in trade talks and a deal can be done.