TOKYO, June 18 Reuters The dollar edged higher on Tuesday as traders awaited a key U.S. retail sales report and comments from Federal Reserve officials to better gauge the timing and pace of interest rate cuts.

The U.S. dollar index , which measures the currency against the euro, sterling, yen and three other major peers, rose 0.11 to 105.39 in Asian hours.

On Monday, it lost 0.2 as it retreated from Friday39;s 1 12month high of 105.80.

The greenback has been pulled in both directions as mild U.S. inflation readings contrasted with an overall hawkish stance by Fed officials at last week39;s policy meeting, when they trimmed their previous median projection for three quarterpoint rate cuts this year to one.

Rather, the rally in the dollar index had been mostly driven by a sharp euro selloff, after French President Emmanuel Macron called a shock snap election last week in response to his ruling centrist party39;s trouncing by Marine Le Pen39;s eurosceptic National Rally in the European Parliament elections.

If you look at the data flow coming out of the U.S., the inflation data and the labour market data are pointing to a turn in policy at the Fed, despite the paring of rate cut projections by officials, said Rodrigo Catril, senior currency strategist at National Australia Bank.

At the moment, it39;s the dollar39;s safe haven appeal that39;s been keeping it supported, Catril added, projecting that the dollar index would stay within its recent 104106 range for the…