On Tuesday, the EUR/USD pair recovered following a minor decline just below the key 1.10 psychological mark and ended the day with modest gains. The gains made helped to stop the three-day losing streak. Additionally, the U.S. dollar price dynamics further helped the pair bounce back. 

The USD’s safe haven status remained due to the spreading of the deadly coronavirus. Bullish U.S. macro releases pushed the U.S. dollar.

In December, Durable Goods Orders increased by 2.4% -- bypassing expectations. Furthermore, Conference Board's Consumer Confidence Index also came out to better than expected after leaping to 131.6 this month. 

Traders are now concentrating on the two-day FOMC meeting. The monetary policy decision is expected to be made public during the U.S. session. It is forecasted to stay around 1.50-1.75% figure. The pair may be affected by the release of German GFK survey results. 

The Cable has eased pressure following four consecutive days of declines, though remains to struggle to hold onto the 1.30 handle. Chances of a BoE rate cut, and fears of a no-deal Brexit are holding back the British pound from gains. On Monday, the EU chief Brexit negotiator Michel Barnier refused to rule out the possibility of a cliff-edge Brexit at the end of 2020.

The demand in U.S. dollar further pressured the sterling.