Investing.com - The pound rose against the dollar on Friday as hopes for a deal to avert a Greek exit from the euro zone and rebound in Chinese shares bolstered investor confidence.
GBP/USD hit highs of 1.5551, the most since July 7, before pulling back to 1.5494 in late trade, ending up 0.79% for the day.
Hopes for a breakthrough on a new bailout deal for Greece were boosted after the government put forward new proposals on budget cuts and economic reforms ahead of a meeting of the euro group of finance ministers on Saturday.
The pound was lower against the euro, with EUR/GBP up 0.18% to 0.7186 late Friday, after rising as high as 0.7224 earlier.
Risk appetite was also boosted as Chinese equity markets gained for a second day on Friday, recovering from a steep plunge earlier in the week as emergency steps taken by the government helped stabilize markets.
Sterling pared back some gains against the dollar after Federal Reserve Chair Janet Yellen said the central bank was on track to raise interest rates at some point this year.
She added that she felt an initial rate hike will have a small impact and reiterated that rates would rise only gradually.
In the week ahead, developments in Greece look likely to continue to dominate sentiment after talks between euro zone finance ministers on a third bailout for Greece ended without an agreement on Saturday.
European Union leaders were to hold another summit meeting on Sunday.
China is to release data on second quarter growth, while monetary policy statements by the European Central Bank and central banks in Japan and Canada will also be in focus.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, July 13
The eurogroup of euro zone finance ministers are to hold talks on Greece’s bailout in Brussels.
The Bank of England is to publish the results of its quarterly survey on credit conditions.
Tuesday, July 14
The U.K. is to release data on consumer price inflation.
The U.S. is to release data on retail sales and import prices.
Wednesday, July 15
The U.K. is to publish its monthly employment report.
The U.S. is to publish figures on industrial production and manufacturing activity in the New York region.
Fed Chair Janet Yellen is to testify on the semiannual monetary policy report before the House Financial Services Committee, in Washington.
Thursday, July 16
Fed Chair Janet Yellen is to testify on the semiannual monetary policy report before the Senate Banking Committee, in Washington.
At the same time, the U.S. is to release data on manufacturing activity in the Philadelphia region.
Friday, July 17
The U.S. is to round up the week with a string of reports on consumer inflation, building permits, housing starts and consumer sentiment.