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FOREX-Dollar treads water as U.S. economy sends mixed signals, sterling rises

By Harry Robertson and Tom Westbrook

SINGAPORE, Nov 17 (Reuters) – The dollar was little changed on Thursday as investors digested mixed U.S. economic data, while the British pound rose ahead of the government’s budget update.

The greenback has tumbled in recent weeks as inflation data and comments from Federal Reserve officials have suggested that the central bank can soon slow the pace of its punishing interest rate hikes.

Yet the dollar paused on Thursday after U.S. retail sales data for October, released on Wednesday, came in stronger than expected.

The euro was flat against the dollar at $1.039, after hitting its highest level since July at $1.048 on Tuesday.

The dollar index, which measures the currency against six major peers, was unchanged at 106.27. The index has fallen more than 7% since hitting a 20-year high in September, although remained around 10% higher for the year on Thursday.

“Markets have positioned for the Fed to…

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