* Euro recovers a little after shedding 1.5 pct on Monday
* Canadian dollar, Norwegian crown fall on cheaper oil
* Yellen testimony on Wednesday awaited
* Sterling jumps after Carney says rate hike getting closer
By Jemima Kelly
LONDON, July 14 (Reuters) - The euro recovered a touch against the dollar on Tuesday but was still close to six-week lows, having fallen sharply the previous day after Greece and its creditors agreed to work on a bailout deal to keep the almost-bankrupt country in the single currency.
As oil fell after Iran and major world powers reached an historic nuclear deal that will grant Tehran relief from sanctions, oil-rich Norway’s crown sank over 1.5 percent , while the Canadian dollar hit a four-month low .
With the Greek debt crisis temporarily off centre-stage, the spotlight had returned to when the U.S. Federal Reserve will begin hiking interest rates, boosting the dollar across the board and taking the euro to a one-week low.
But with no certainty that the unpopular deal would pass through the Greek parliament by its Wednesday deadline, and with Fed Chair Janet Yellen due on the same day to give testimony to Congress that could push back expectations for when U.S. interest rates will rise, the greenback edged down on Tuesday.
By 1150 GMT the euro was up 0.3 percent at $1.10275, having shed 1.5 percent on Monday.
“I‘m not sure we can get the energy (for the euro) to go further unless one of two things happens: either there are negative connotations coming from the Greek vote tomorrow ... or Yellen stands up and says something slightly more hawkish,” said Kit Juckes, macro strategist at Societe Generale in London.
The common currency slid to a 12-year low of $1.0457 in March when the European Central Bank launched its quantitative easing policy. But it spent much of the past two months above $1.11 as talks between Greece and its creditors dragged on.
Investors expect the Fed to start raising rates later this year, in stark contrast to the ECB and the Bank of Japan, which are seen continuing with their ultra-loose monetary policies for the foreseeable future. That should drive the euro lower in the long term, strategists said.
“I was speaking to many clients yesterday and there is a shift in focus ... to more fundamental market drivers,” said Credit Agricole FX strategist Manuel Oliveri in London.
The dollar earlier hit a 12-day high against the yen, which lost its safe-haven appeal with the worst-case-scenario of Greece exiting the euro seemingly averted, at 123.74 yen. It later edged down to 123.35.
As oil prices fell, the Canadian dollar dropped to C$1.2805 against its U.S. counterpart, its weakest since mid-March, while the Norwegian crown weakened to 9.0340 crowns per euro .
Sterling jumped to a one-week high of $1.5604 after Bank of England Governor Mark Carney said the time for a first UK rate hike since the financial crisis was getting closer. (Reporting by Jemima Kelly; Editing by Mark Trevelyan)