As long as you yield to any traffic that wants to use the inner lane, you could previously drive around the outside lane the entire way. It really isn't considered the most defensive driving choice though.
As long as there is no one waiting to enter the traffic circle at the entrances you are passing, there is zero problems with driving around the outer lane. If there are people there, then you make it (slightly) harder for them to enter the circle, since they need to cross the lane you are in.
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