* U.S. jobs data on Friday in focus
* U.S. manufacturing activity fell in July
* Euro hurt as Greek stock market plunges
* Canadian dollar weakest in decade as oil slides (Updates prices; adds jobs projections, consumer spending data)
By Karen Brettell
NEW YORK, Aug 3 (Reuters) - The dollar gained on Monday as investors looked ahead to jobs data on Friday that is expected to show a still strengthening labor market.
Strong job gains may boost expectations that the Federal Reserve is closer to raising interest rates, which many see as likely to begin in September.
Employers are expected to have added 223,000 jobs in July, according to the median estimate of 100 economists polled by Reuters.
"The labor market data on Friday is the big event," said Win Thin, global head of emerging market strategy at Brown Brothers Harriman & Co in New York. "The Fed is ready to lift off; if we get a strong reading on jobs, over 200,000, the lift-off is on track."
Many investors see the Fed as likely to raise rates even as other indicators point to middling growth and still-low inflation.
The greenback pared gains earlier on Monday after U.S. consumer spending in June advanced at its slowest pace in four months as demand for automobiles softened.
Separately, the Institute for Supply Management said its index of national factory activity fell to 52.7 last month from 53.5 in June, though still above the 50 mark that indicates expansion. ID:nL1N10E0NV
The dollar was supported against the euro as the Greek stock market plunged on its reopening following a five-week shutdown.
"The drop in the Greek stock market has put the euro under slight pressure," said Yujiro Goto, currency strategist at Nomura.
The dollar last traded against the euro at $1.0948 EUR= .
The dollar traded at 97.508 .DXY against a basket of six major currencies on Monday, up 0.17 percent on the day but below a one-week high of 97.773 set last Thursday.
Losses in the euro were capped by data showing euro zone factory activity grew more quickly than previously thought in July. ID:nL9N0YN00C
The Canadian dollar and emerging market currencies weakened as crude oil prices fell.
"The commodities story is having strong repercussions across markets," said Brown Brothers' Thin.
The Canadian dollar fell to its lowest level in more than a decade against the greenback. The dollar rose to C$1.3175, its highest since September 2004 CAD=D4 .