The dollar slid against the euro on Monday, but edged up against the yen in cautious trading before key economic data, and amid fears that the global economic recovery may be losing steam, analysts said. In late morning trading heree, the European single currency firmed to 1.3067 dollars from 1.3047 dollars in New York late on Friday. Against the Japanese currency, the dollar rose to 86.85 yen, up from 86.48, after earlier topping 87 yen in Asian trade. Later on Monday, markets will digest the US Institute for Supply Management survey for manufacturers, which is forecast to show the main activity index fell in July. "Looking ahead, we expect to see another volatile week of trade, with a heavy round of global economic data and central bank event risk later in the week," said Joel Kruger, currency strategist at trading website Daily FX. Further afield, both the Bank of England and the European Central Bank will announce their latest interest rate decisions on Thursday, with no change expected from their key lending rates. Economist Lee Hardman, at The Bank of Tokyo Mitsubishi UFJ in London, said the safe-haven yen would eventually draw strength from recent downbeat data which showed that the global recovery was faltering. "The US second-quarter GDP report released on Friday and the Chinese PMI survey for July released over the weekend both continued to provide evidence that the pace of economic recovery in the two largest economies is losing upward momentum," said Hardman. "Given that both the US and Chinese economies account for around a third of world output in purchasing power terms, slowing momentum in those leading economies will inevitably raise global growth concerns helping to support safe haven currencies such as the yen as the year progresses." US gross domestic product (GDP) growth fell back sharply to 2.4 percent in the second quarter, official data showed on Friday, slamming the brakes on an already tepid rebound and painting a bleak picture of the road ahead. The official China Federation of Logistics and Purchasing showed Sunday that manufacturing activity slowed in July, but remained in positive territory with a reading of 51.2 -- for an overall decline it would have to be below 50. And on Monday, an HSBC China Manufacturing PMI, or purchasing managers' index, suggested a contraction in July, with a reading of 49.4. In earlier Asian deals, the dollar had briefly hit 87 yen after Finance Minister Yoshihiko Noda said excessive volatility in currency rates could hurt economic activity, signaling his discomfort with the yen's renewed strength. In trading in London, the euro changed hands at 1.3067 dollars against 1.3047 dollars on Friday, at 113.51 yen (112.84), 0.8271 pounds (0.8311) and 1.3662 Swiss francs (1.3585). The dollar stood at 86.85 yen (86.48) and 1.0457 Swiss francs (1.0408). The pound was at 1.5797 dollars (1.5698). On the London Bullion Market, the price of gold rose to 1,178.75 dollars an ounce from 1,169 dollars an ounce on Friday. - Sapa-AFP

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