USD Faces Pressure Ahead of Jobs Data, Consumer Confidence Release

The US dollar index retreated 0.3% to 103.20 as traders position defensively ahead of Tuesday's consumer confidence data and Friday's crucial non-farm payrolls report. Market expectations point to consumer confidence declining to 98.5 from 99.2, potentially signaling weakening economic momentum. EUR/USD climbed 0.25% to 1.0850, while GBP/USD advanced to 1.2955 as dollar selling intensified. USD/JPY remained under pressure at 149.00 following overnight warnings from Japanese officials. EUR/GBP traded sideways at 0.8370 as both currencies gained against the greenback. Analysts project Friday's jobs report will show 175,000 new positions, down from 223,000 previously, with unemployment potentially ticking up to 4.1%. Any disappointment could fuel further dollar weakness and increase Fed rate cut expectations. Support for the dollar index sits at 102.80, with resistance at 103.75.