Pound slightly lower vs stronger greenback; Expectations for rate hikes buoy both currencies

On Monday Cable was almost unchanged with the pound slightly lower against a stronger greenback. Expectations for soon rate hikes in the U.S. and the U.K. buoy the both currencies.

GBP/USD hit 1.5572 during European trade - the session low - shedding 0.19%.

Demand for the greenback was stronger after the release of positive data on Friday which fuelled expectations for a soon U.S. rate hike.

The U.S. consumer price index climbed 0.3% in June, while consumer prices added 0.1% last month on a yearly basis, data showed Friday.

Other data signaled that U.S. housing starts rose 9.8% to 1.174 million units in June, compared to expectations for an increase of 6.2%.

U.S. building permits increased 7.4% to 1.343 million units last month, beating expectations for a 11.8% drop.

Last Wednesday, Federal Reserve Chair Janet Yellen said in testimony before the House Financial Services committee, that the central bank is likely to lift rates "at some point this year," despite turmoils overseas. She noted that the U.S. labor market healthier but there is "still some slack."

Sterling also remained supported after Bank of England Governor Mark Carney said last week week that the time for rate increases is moving closer.

Elsewhere, gold recovered after a steep drop during Asian trade, when the metal tumbled as much as 5.3% - a level not seen since February 2010.

So far, August gold dropped $18.10, or 1.6%, to trade at $1,113.80 a troy ounce, while silver futures for September delivery skid 4.7 cents, or 0.32% to trade at $14.78 an ounce.

Copper was also lower Monday impacted by losses across the metals sector.

Comex copper for September delivery gave up 0.9 cents, or 0.37%, to trade at $2.487 a pound.