European markets nudge higher, SP futures climb
Yen adds to week39;s huge rally, dollar on back foot
Oil prices try for a fourth straight day of gains

LONDONSYDNEY, Dec 22 Reuters The dollar softened against major currencies and European stocks ticked higher on Thursday as easing U.S. inflation expectations reinforced investor confidence of a let up in price pressures.

The Japanese yen inched closer to the fourmonth peak it scaled against the dollar on Tuesday after a hawkish policy tweak by the Bank of Japan fuelled widespread bets that the most dovish central bank of 2022 would roll back monetary stimulus.

Easing gas prices pulled U.S. consumer 12month inflation expectations down to 6.7 this month, the lowest since September 2021, data showed on Wednesday.

Meanwhile consumer confidence rose to its highest reading since April, beating expectations of economists polled by Reuters and sparking a rally on Wall Street that lifted beatendown European stocks on Thursday.

While the US Federal Reserve raised its main interest rate by 50 basis points in its seventh hike of the year in December, money managers are expecting the world39;s most influential central bank to soften its stance as inflation ebbs lower.

The view is that we are getting close to the end of rate hikes and perhaps there will be a Fed pivot, said Anish Grewal, portfolio manager at Londonbased hedge fund Enora Global.

Markets are too relaxed about this, he said, but the expectations are that we get…