The pound climbed against its major counterparts in the European session on Tuesday, as European shares rose after the U.S. and China resumed talks aimed at easing trade tensions.

U.S. Treasury Secretary Steven Mnuchin has resumed discussions with his Chinese counterpart, Vice Premier Liu He, signaling a willingness on both sides to reach an accommodation, the Wall Street Journal reported.

Investors also kept an eye on Italy ahead of the deadline for the country to resubmit its budget proposals to the European Union.

Brexit talks in Brussels concluded with "optimism on both sides" but not final deal has been reached amid split over the issue of the Irish border.

In a speech on Monday, U.K. Prime Minister Theresa May remarked that talks were at the "endgame".

Preliminary data from the Office for National Statistics showed that the UK unemployment rate rose slightly in the three months to September to 4.1 percent.

In the past two months, the ILO jobless rate was steady at 4 percent, which was the lowest level since early 1975. Economists had forecast the rate to remain unchanged.

The currency has been trading higher against its major rivals in the Asian session, barring the euro.

The pound climbed to 1.2918 against the greenback, from a low of 1.2838 hit at 5:00 pm ET. The pound is likely to find resistance around the 1.31 level.

Having dropped to near a 2-week low of 145.99 against the yen, the pound reversed direction and rose to 147.44. If the pound rises further, it may challenge resistance around the 148.00 level.

The pound reached as high as 1.3051 against the franc, up from a low of 1.2971 seen at 5:30 pm ET. On the upside, 1.32 is possibly seen as the next resistance level for the pound.

The U.K. currency appreciated to a 4-day high of 0.8704 against the euro, reversing from a low of 0.8742 touched at 2:00 am ET. Next key resistance for the pound is seen around the 0.86 level.

Figures from the Federal Statistical Office showed that Germany's consumer price inflation in October was the highest in over a decade.

The consumer price index rose 2.5 percent year-on-year following a 2.3 percent increase in September.

Looking ahead, at 10:00 am ET, Federal Reserve Governor Lael Brainard gives a speech titled "Artificial Intelligence and the New Financial Landscape" at the Fintech conference hosted by the Federal Reserve Bank of Philadelphia.

The U.S. monthly budget statement for October is set for release at 2:00 pm ET.

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