Dollar wallows near 4month lows; set to end week down 2
Markets expect 150 bps rate cuts from Fed next year
Euro and pound buoyant on hawkish rhetoric
Yen set for fifth straight week of gains
MORNING BID EUROPEFed feted, Ueda awaited

SINGAPORE, Dec 15 Reuters The dollar was set for its steepest weekly drop against major currencies since July, weighed by growing prospects of U.S. rate cuts next year, while the euro and pound found support on Friday as central banks in Europe stuck to their hawkish paths.

The spotlight will now switch to Bank of Japan39;s meeting next week with the central bank likely to end the year as one of the world39;s most dovish as expectations of the BOJ to exit its ultra loose monetary policy fade.

In an actionpacked week for central banks, traders found more clarity on when interest rate cuts were likely after Federal Reserve Chair Jerome Powell said at Wednesday39;s meeting that the tightening of monetary policy is likely over, with a discussion of cuts coming into view.

That has resulted in the greenback sliding against rivals, with the dollar index at 102.01, not far from the fourmonth low of 101.76 it touched on Thursday. The index is down nearly 2 and set for its steepest weekly decline since July.

Chris Weston, head of research at Pepperstone, said the aftermath of the central bank fest is that the market has brought forward the timing of cuts expected in 2024, with many participants now expecting them to start around March….