Jan 30 (Reuters) - The dollar index fell 0.10% by New York afternoon trade, as markets factored in month-end selling, forecast-beating U.S. job openings and consumer confidence hitting a two-year as-forecast high, while investors also awaited the Fed on Wednesday.

The dollar failed to hold earlier rebound highs as traders mulled a rise in the quits rate in the JOLTS data as well as higher layoff and discharges, which capped Treasury yields.

EUR/USD, the major component of the dollar index, was flat and already on the rebound after Monday's lows held the 50% Fibo of the October-December rise at 1.0794 and euro zone GDP eked out a 0.1% Q4 GDP beat on the back of growth in Spain and Italy, with Germany's as-forecast -0.3% and -0.4% quarterly and year-on-year results weighing.

Futures trimmed market-perceived probability of a March Fed rate cut to 40% from closer 50% on Monday and near certainty around the turn of the year. A total of 128bp of cuts by year end versus a recent peak near 150bp has the market closer to the three rate cuts favored in Fed's December dot plots. That may reduce how much the Fed and Chair Jerome Powell decide to push back against aggressive market rate cut expectations on Wednesday.

More important might be the remainder of this week's U.S. labor market data that includes ADP on Wednesday, jobless claims and Challenger layoffs on Thursday and Friday's employment report. Forecasts for those reports are on balance suggestive of further cooling of a still fairly hot labor market.

Within the context of the Fed's favored core PCE inflation gauge in H2 2023 having already fallen to the 2% target, the market likely rightly still sees a chance of a March rate cut and certainty of one by May.

That as an ECB cut isn't favored until April, a BoE cut isn't fully priced until June and a modest 10bp BoJ hike is seen most likely in April or June.

USD/JPY gained 0.2% on the post-JOLTS rebound in Treasury-JGB yields spreads, but will need more yield support from the Fed and upcoming U.S. data to resume its stalled recovery from December's trough.

Sterling fell 0.24%, having recovered some of the drop 1.2641 lows hit after the JOLTS beat and the slowest rise in UK shop prices since May 2022 ahead of Thursday's BoE meeting, but recent weekly range lows near 1.2600 remain intact.

Aussie fell 0.24% weighed down by a 2.7% dive in Australian retail sales, falling iron ore prices and lingering worries about Chinese demand.

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(Editing by Burton Frierson
Randolph Donney is a Reuters market analyst. The views expressed are his own.)

((Randolph.donney@thomsonreuters.com))