Investing.com - The pound was almost unchanged against the U.S. dollar on Monday, as expectations for upcoming rate hikes in the U.S. and the U.K. lent equal support to both currencies.
GBP/USD hit 1.5583 during European morning trade, the session low; the pair subsequently consolidated at 1.5588.
Cable was likely to find support at 1.5554, Friday's low and resistance at 1.5671, Friday's high.
Demand for the dollar remained supported after upbeat data on Friday fuelled further expectations for a U.S. rate hike in the near future.
Data on Friday showed that the U.S. consumer price index rose 0.3% in June, while consumer prices ticked up by 0.1% last month on a yearly basis.
A separate report showed 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 rose 7.4% to 1.343 million units last month, confounding expectations for a 11.8% drop.
The data came after Federal Reserve Chair Janet Yellen said, in testimony before the House Financial Services committee, that the Fed is likely to raise rates "at some point this year." She added that the U.S. labor market healthier but "still some slack."
Meanwhile, the pound also remained supported after Bank of England Governor Mark Carney said last week week that the time for rate increases is moving closer.
In testimony to the Treasury Committee in Westminster, Carney said that "the point at which interest rates may begin to rise is moving closer with the performance of the economy, consistent growth above trend, a firming in domestic costs, counter balanced somewhat by disinflation imported from abroad."
Sterling was lower against the euro, with EUR/GBP rising 0.28% to 0.6965.
Greek banks were set to reopen on Monday after a forced 3-week closure but restrictions on cash withdrawals were still to remain. In a decree Saturday, the Greek government kept the daily cash withdrawal limit at €60 but added a weekly limit of €420.
The decree came on the same day as Greece's coalition government swore in its new, reshuffled cabinet. Five prominent dissidents from the Syriza party, the senior coalition party, were replaced.
On Friday, German lawmakers voted in favour of opening discussions on Greece's third bailout and the European Union decided to release a short-term loan of €7.16 billion to help Greece pay back a loan due Monday to the European Central Bank.
The Greek Parliament was scheduled to vote on further austerity measures on Wednesday.