The Dollar is still more interested in the Federal Reserve than the November Presidential election, says an analyst at HSBC.

The Pound to Dollar exchange rate's advance has paused just short of the 1.30 barrier. Upcoming U.S. retail sales and UK inflation figures will determine whether a deeper pullback now emerges.

Pound Sterling has risen to its highest level in a year against the Dollar after last week's 1.35% gain. But, the rally leaves it technically overbought in the near term and exposed to weakness if this week's inflation and wage figures undershoot expectations.

The Dollar fell notably after the U.S. reported that inflation shrunk last month, indicating the likelihood of an interest rate cut in September.