FOREX-Dollar rises after upbeat U.S. data

* U.S. third-quarter GDP growth revised higher
* Pound hovers around $1.29 after Conservative lead dwindles

(Recasts throughout, updates rates, adds comments post-U.S.
market open; new byline, changes dateline; previous LONDON)
By Saqib Iqbal Ahmed
NEW YORK, Nov 27 (Reuters) - The dollar rose on Wednesday
helped by upbeat U.S. data even as continued uncertainty about
the outlook for a preliminary U.S.-China trade agreement and a
shortened holiday week in the United States kept currency moves
muted.
U.S. economic growth picked up slightly in the third
quarter, rather than slowing as initially reported, amid a
stronger pace of inventory accumulation and a less steep decline
in business investment. Separately, data showed new orders for key U.S.-made capital
goods increased by the most in nine months in October and
shipments rebounded.
"The dollar is definitely supported by the data," said
Alfonso Esparza, senior currency analyst at OANDA in Toronto.
"The Fed has signaled that is done for the year and good
data validates that thinking," he said.
The U.S. Federal Reserve has cut rates three times this year
and signaled its rate-cut cycle might be at a pause. A show of
strength in U.S. economy is giving traders confidence the
central bank will keep borrowing costs where they are for now.
"The other thing is that this is basically the end of the
week for U.S. markets and no one wants short dollar exposure
going into the Thanksgiving weekend," Esparza said.
The dollar index .DXY , which compares the greenback
against six other major currencies, was up 0.17% at 98.415.
The index pared gains after data showed, excluding volatile
food and energy components, that the personal consumption
expenditures (PCE) price index edged up 0.1% last month after
being unchanged in September.
"A 0.1% m/m rise in the core PCE deflator left the Fed's
preferred core inflation rate at a well below-target 1.6%. That
underlines that interest rates are unlikely to be raised again
for the foreseeable future," said Andrew Hunter, senior U.S.
economist at Capital Economics.
While recent reports that the United States and China are
close to agreement on the first phase of a trade deal have
helped support risk sentiment, there remains much uncertainty
about the outlook for the trade talks.
Lingering trade tensions have generally been supportive of
the greenback as investors view the United States as relatively
well-positioned to weather a full-blown trade war should there
be one.
The yen, usually bought when investors turn nervous, has
faltered in recent sessions as equity markets soared. On
Wednesday, the dollar gained 0.31% to 109.37 yen.
Sterling was little-changed on the day, recovering from
early losses following the third consecutive poll showing a
dwindling Conservative lead before Britain's Dec. 12 general
election. Investors will be watching for the release of the YouGov
seat-by-seat predictions of the election outcome at 5 p.m. EST
(2200 GMT). The multilevel regression and post-stratification
model accurately predicted the 2017 hung parliament, so it will
be closely watched.

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(Editing by William Maclean, Ken Ferris and Tom Brown)