Posted by Zeb BhamSterling pushed higher in foreign exchange markets versus the US dollar yesterday (November 17th) to trade at $1.5802.According to Reuters, the pounds gain were limited - despite positive UK retail sales figures - as uncertainty remains about the strength of the nation's economy.It noted that this was helped by the euro's improved fortunes versus the greenback, amid a decline in US weekly jobless claims.The Office for National Statistics indicated that in comparison with the same period in 2010, the value of sales rose by 5.4 per cent in October. The number of transactions rose 0.6 per cent from the previous month as retailers attributed the better-than-anticipated changes to promotions and sales offered in the run-up to Christmas.Online shopping also increased during the month with the average weekly spending going from £518.7 million in September to £561.5 million.Commenting on the findings, currency economist at Bank of Tokyo-Mitsubishi UFJ Lee Hardman told the newswire: "The retail sales data is better news but the broader picture still remains that there are significant risks to consumer spending ahead. It's best to take this month's data with a pinch of salt."We are looking for the pound to continue to grind lower against the yen and the dollar. Cable in the low $1.50s is our outlook for the next three to six months."Some analysts remain wary of the outlook for sterling as on Wednesday the Bank of England released it Quarterly Inflation Report, which cut forecasts for growth in the UK and made further quantitative easing a possibility in the near future.Earlier this week, Chris Gothard, head of FX for Brown Brothers Harriman in Hong Kong, told Reuters that France, Belgium and Austria are at risk of contagion, adding that the multi-nation currency may be set to test the recent low of $1.3150.For more information on foreign exchange treasury services and risk management, visit our Corporate FX site