LONDON, July 29 - The dollar gave up ground against the euro and the yen on Tuesday as investors braced for a hefty dose of U.S. economic data this week, starting with consumer confidence data due later in the day. All the signs are pointing to an improvement in confidence as stock markets have rallied and the Federal Reserve has made encouraging noises about the prospects for recovery, but investors remained hesitant in tilting their positions ahead of the data. U.S. consumer confidence, due at 1400 GMT, is expected to have risen to 85.0 in July from 83.5 in June. By 0650 GMT the dollar stood a third of a percent weaker on the day at $1.1527 per euro having hit a three-week low of $1.1550 last Friday. Against the yen it was at 119.17 compared with 119.44 in late New York on Monday after rising to a 3-1/2 week high of 119.59 on Monday. Also on Tuesday, U.S. Treasury Secretary John Snow participates in a roundtable for small business at 1300 GMT. Federal Reserve Bank of Dallas President Robert McTeer speaks on the economy at 1300 GMT. Most recently McTeer said the Fed can keep interest rates low even if the U.S. economy strengthens appreciably without worrying any time soon that inflation will become troublesome. Chicago Fed President Michael Moskow said on Monday it was unlikely the fed funds rate, currently one percent, would get to zero because the chance of deflation was low.