US dollar strengthens versus the British pound - are the best GBP-USD rates now slipping away?

The pound versus US dollar exchange rate is 0.18 pct in the red at 10:46 in London.

NB: The above is a wholesale quote; your bank will affix their own discretionary spread to the number. However, an independent FX provider will guarantee to beat your bank's offer, thus delivering you more currency. Please learn more here.

Richard Driver at CaxtonFX tells us that recent US dollar weakness has offered a great opportunity to pick up USD:

"With the Bank of Japan deciding against stepping up its quantitative easing campaign this week, the yen has found its feet, which has naturally resulted in a weaker US dollar.

"This pair crept up to $1.57 yesterday and this is a very good price to buy dollars, particularly if today’s US data impresses this afternoon and sparks a USD recovery."

Piet Lammens at KBC Markets tells us, "The price action of the dollar is in first place driven by the swings in USD/JPY, keeping the dollar under moderate pressure against most ‘non-carry currencies’ like the euro or sterling."

However, we are now witnessing the US dollar advance against sterling; indeed the USD is strengthening right across the board - are we set to see further gains?

The agenda for the US dollar today is busy

Today's big event for markets and the US dollar is the release of retail sales statistics by the US Census Bureau.

Joshua Mahony at Alpari UK tells us that today's data should not be under-estimated:

"The importance of retail sales figures should not be underestimated amongst analysts, who on the whole see it for the overarching indicator that it is.

"Positive connotations from a strong retail sales figure stretch across the range of indicators, with improved spending by consumers bringing about a perception of higher expectations with regards to employment, wages, inflation and overall economic outlook."

Consensus estimates are for a 0.4 pct growth rate, up from last month's 0.1 pct reading.

"After a poor start of the second quarter, it will be interesting to see whether US retail sales picked up in May. In April, retail sales rose by a meagre 0.1% M/M, partly due to lower gasoline station sales," says Piet Lammens at KBC Markets.

For the headline figure, Lammens believes that the risks are for a weaker outcome as gasoline station sales will probably continue to weigh on retail activity. "The underlying picture should however be somewhat stronger," says the analyst.

Also in the US, initial jobless claims are forecast to stay unchanged in the week ending the 8th of June.

After a drop by 11 000 in the previous week, the consensus is looking for a stabilisation at 346 000.