A modest pickup in the USD demand prompted some fresh selling around GBP/USD on Tuesday. The discovery of a new COVID-19 strain continued driving some haven flows towards the USD. Hopes for a last-minute Brexit deal extended some support to the GBP and helped limit losses. EUR/USD failed to capitalise on the overnight bounce and witnessed some fresh selling on Tuesday. The discovery of a new COVID-19 variant benefitted the safe-haven USD and exerted some pressure. The lack of any strong follow-through selling warrants caution before placing aggressive bearish bets. The dollar was up on Tuesday morning in Asia, but jitters over a new COVID-19 strain left the greenback trading well below the peaks seen during a rollercoaster session overnight. The dollar index edged up 0.20% to 90.132. However, the dollar is headed for a third consecutive quarterly loss and is down 12.5% from a three-year peak in March.