Pound declines against stronger greenback, as U.S. rate hike expectations weigh

The pound dropped against the U.S. counterpart on Tuesday, as growing expectations for a near-term U.S. rate hike continued to lend broad support to the greenback.

GBP/USD hit 1.5029 during European morning trade, the session low; the pair subsequently consolidated at 1.5052, declining 0.51%. Cable was likely to find support at 1.4986, the low of February 3 and resistance at 1.5135, Monday's high.

The dollar rwas underpinned after the latest U.S. jobs report heigthened expectations for higher interest rates. Investors hope the Fed will begin raising interest rates around the middle of this year and investors were looking ahead to next week’s policy statement to see if it would drop its reference to being patient before raising rates.

Sterling was higher against the euro, with EUR/GBP sliding 0.41% to 0.7143.

Sentiment on the euro was fragile after European Central Bank President Mario Draghi told Greek officials at a meeting on Monday that they must let representatives of the so-called 'Troika' return to Athens and examine the government's books in order to obtain more aid.

The Greek authorities allowed experts from the European Commission, ECB and International Monetary Fund to start work in Athens on Wednesday.