Dollar mostly flat as softer US data fuel dovish rate bets

NEW YORK/LONDON, Aug 18 : The U.S. dollar was mostly flat against major peers on Tuesday as markets continued pricing in a dovish response from the Federal Reserve in the wake of softer economic data.The euro eased away from two-month highs of $1.161 touched on Monday and was last up 0.07 per cent at $1.1587. Data in the past few weeks have pointed to a softer U.S. economy, including unexpected job losses last month and mild inflation readings, leading investors to scale back expectations of an interest rate hike by the U.S. Federal Reserve.Market pricing for a September quarter-point hike flipped toward a near-70 per cent chance of a hold, after recent news of unexpected job losses in July and other economic data. "Current levels, particularly dollar-denominated pairs, are just reflecting