On Tuesday sterling was higher against the U.S. dollar after robust U.K. data. The gains were capped, however, as the greenback is buoyed by the Fed rate hike expectations.
Meanwhile, Greek developments point to the country's recovery which supports the euro.
GBP/USD hit 1.5591 during European morning trade, the session high; the pair subsequently consolidated at 1.5575, higher just 0.09%.
Earlier Tuesday, the U.K. Office for National Statistics reported on Tuesday that public sector net borrowing climbed to £8.58 billion in June from £8.35 billion in May, whose figure was revised down from a previously estimated £9.35 billion.
Analysts had expected public sector net borrowing to rise to £8.60 billion last month.
However, the both currencies were supported on rate hike hopes in the U.S. and the U.K.
Bank of England Governor Mark Carney said last week week that the time for rate increases is approaching.
Meanwhile, Fed Chair Janet Yellen said in her testimony last week that the central bank is likely to raise rates at some point this year.
The euro was higher against sterling Tuesday, with EUR/GBP adding 0.11% to 0.6962, as Greece developments point to a healthier situation in the country.
EUR/USD was last at 1.0850, higher 0.24%.
Greek banks reopened on
Monday following a forced three-week closure, while restrictions on withdrawals were kept. Thus, citizens can now withdraw up to 60 euros daily and up to 420 euros per week.
The government also cleared its 2 billion euros of arrears with the IMF, made an overdue payment of 470 million to the Greek central bank and covered 4.2 billion euros of interest and principal payments to the European Central Bank, Bloomberg reported.
The creditors plan to wrap up negotiations on the terms of the
country’s new bailout by August 6, and disburse the first tranche from the
program to the cash-strapped country by August 17, an international
official with knowledge of the matter said to Bloomberg.
On August 20 Greece has to pay the ECB another 3.2 billion euros.
