Sterling hit a 6-1/2 week low against a buoyant dollar on Thursday while it ticked higher versus the euro, as investors focused on U.S. data due later in the day would push up the greenback across the board. The euro hit a three-month low against the dollar as expectations intensified U.S. retail sales data due later in the day would add to a growing optimism about the U.S. economy. In the absence of key UK data, sentiment remained sour for sterling after the Bank of England cut its growth forecast on Wednesday in its dovish inflation report. "The market is focusing on upcoming U.S. retail sales data. People are speculating on a very strong reading on retail sales," said Carsten Fritsch, currency strategist at Commerzbank. By 0710 GMT sterling fell a third of a percent on the day to $1.8660. Against the euro it was slightly up.