* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

* Graphic: Trade-weighted sterling since Brexit vote http://tmsnrt.rs/2hwV9Hv

By Maiya Keidan

LONDON, July 7 (Reuters) – Sterling held near a three-week
high against the dollar and gained against the euro on Tuesday
as investors waited for more details of the government’s plans
to support the British economy.

Chancellor Rishi Sunak will make a speech on spending on
Wednesday, with more measures seeping out since Prime Minister
Boris Johnson announced five billion pounds of infrastructure
investment seven days ago.

Sunak is considering handing out vouchers of 500 pounds
($624) for adults and 250 pounds for children, to spend in
sectors of the economy hit hardest by the coronavirus crisis,
the Guardian said on Sunday.

“Prime Minister Johnson’s so-called New Deal for
infrastructure spending was deemed insufficient and so UK
business interests are urging Sunak to be more aggressive,” said
Brown Brothers Harriman analysts in a note.

Against the dollar, the pound was lower at $1.2475
but within striking distance of a June 18 high of $1.2568.
Against the euro, it rose 0.1% to 90.49 pence.

Despite the pound’s gains, some investors remained cautious
about the currency’s outlook. Positioning data showed hedge
funds increasing their bearish bets on the British pound, as the
UK and European Union try to reach a trade agreement in their
Brexit negotiations.

That caution was evident in the price action with the pound
struggling to make headway above $1.25 on three previous

“The pound will likely be caught in no man’s land throughout
this week and will simply take its cue from broad dollar
sentiment,” strategists at Scotiabank said in a note.
(Reporting by Maiya Keidan; editing by Saikat Chatterjee and
Larry King)