LONDON, May 17 Reuters The dollar edged up against major currencies on Friday but was still headed for a weekly fall, as market speculation continues to swirl about the timing of Federal Reserve rate cuts amid signs of cooling inflation and a softening U.S. economy.

Data on Wednesday showed consumer prices rose more slowly than expected in April, but various policymakers have given little away on when rates may fall, limiting the dollar39;s declines this week.

The dollar index which tracks the greenback against six peers was up 0.2 on Friday at 104.74, but was still on track for around a halfpercentagepoint weekly decline.

Futures markets are currently pricing in 47 basis points of Federal Reserve rate cuts by the end of this year.

The comments this week from Fed officials were in our view still indicative of a Fed that would be willing to turn and cut relatively quickly if the evidence becomes available to back it up, currency analysts at MUFG said in a note.

Even though markets price European rate cuts beginning in June, recent data has shown some upside surprises. Germany39;s economy grew more than expected last quarter and investor morale is at a twoyear high.

Euro zone consumer inflation data on Friday came in at 2.4 yearonyear in April, in line with a Reuters poll.

The euro dipped 0.2 on the day to 1.084325. It is still up around 0.7 on the dollar this week.

Euro zone policymakers have increased confidence that inflation will ease back to target next…