Higher U.S. futures that indicate a firm start for equities amid renewed optimism about coronavirus vaccine following resumption of stage III trials in the U.K. by AstraZeneca contributed to dollar's weakness, but likely limited gold's uptick as well.

The dollar index, which dropped to 92.99, is currently at 93.04, down 0.32% from Friday's close.

Gold futures for December are up $4.20 or 0.22% at $1,952.10 an ounce.

Silver futures for December are rising $0.184 or 0.7% at $27.050 an ounce, while Copper futures for December are gaining $0.0142 or 0.47% at $3.0537 per pound.

A report from OPEC showing a downward revision in its outlook for global oil demand for the year is weighing on crude prices.

West Texas Intermediate Crude oil futures for October are down $0.05 or 0.13% at $37.28 a barrel, coming off a low of $36.85 a barrel.

Citing the likely slow pace of recovery of the Indian economy as well as that of several other Asian countries, OPEC has lowered its oil demand forecast for the year to about 90.2 million barrels per day, down by about 400,000 barrels from its August estimate.

OPEC has also said that demand for oil is likely to be low in the first six months of the coming year as well. "Additionally, risks remain elevated and skewed to the downside, particularly in relation to the development of Covid-19 infection cases and potential vaccines," the group said in the report.

An announcement from Libya that it would end its months-long blockade and resume output also contributed to oil's weakness earlier in the session.

The wholesale price index rose 0.16 percent year-on-year in August, after a 0.58 percent decrease in July. Economists had expected a 0.27 percent fall.

The primary articles price index rose 1.60 percent annually in August, after a 0.63 percent increase in the previous month.

Food price inflation slowed to 4.07 percent in August from 4.32 percent.

Fuel and power prices decreased 9.68 percent in July, following a 9.84 percent fall in the prior month.

Prices of manufactured products grew 1.27 percent in August, after a 0.51 percent gain in the previous month.

The final wholesale prices declined 1.81 percent in June.

The consumer price index rose 1.4 percent year-on-year in August, slower than the 1.7 percent increase in July. Economists had expected a 1.5 percent rise.

The latest inflation rate was the lowest since July 2017.

Prices for miscellaneous goods and services grew 4.6 percent yearly in August and education gained 4.5 percent. Prices for housing, water, electricity, gas and other fuels, and restaurants and hotels increased by 2.8 percent and 2.3 percent.

Meanwhile, prices for transport declined 5.0 percent and communication cost remained unchanged.

On a month-on-month basis, consumer prices fell 0.1 percent in August, reversing a 0.1 percent rise in the previous month.

The core CPI rose 1.5 percent annually in August and decreased 0.1 percent from the previous month.

Construction output fell by a working-day-adjusted 26.6 percent year-on-year in the second quarter, after a 5.7 percent decline in the first quarter. This was the worst production outcome since the third quarter of 2017.

Production in building construction decreased 18.6 percent yearly in the second quarter and that of civil engineering declined 31.3 percent.

On a quarterly basis, construction output grew 6.6 percent in the second quarter, after a 41.3 percent slump in the previous three months.

The index of industrial production for manufacturing industries as a whole fell 5.1 percent year-over-year in the second quarter, following a 4.6 percent decline in the previous quarter.

The sub index for sewerage, waste management and remediation activities declined 2.4 percent annually in the second quarter.

On a seasonally adjusted basis, the index of industrial production for manufacturing industries as a whole decreased by 0.8 percent in the second quarter compared with the previous quarter.

Data also showed that industrial producer prices grew 1.3 percent annually in the second quarter, same as seen in the previous quarter.

Industrial production rose 4.4 percent year-on-year in July, following a 0.4 percent rise in June. Economists had expected a 3.0 percent rise.

Manufacturing output grew 5.1 percent annually in July.

Production in mining and quarrying declined 4.9 percent, while output in the electricity, gas, steam increased 1.4 percent.

On a monthly basis, industrial production rose 8.4 percent in July, after a 17.8 percent growth in the previous month.

Separate data from Turkstat showed that retail sales gained 11.9 percent yearly in July, following a 0.4 percent rise in June.

Non-food sales increased 13.9 percent and sales of food, drinks and tobacco grew 12.3 percent. Automotive fuel sales rose 7.2 percent.

On a monthly basis, retail sales rose 9.5 percent in July, after a 18.0 percent increase in the previous month.

Industrial production rose a seasonally adjusted 3.3 percent month-on-month in July.

Manufacturing output grew 4.3 percent monthly in July. Production in mining and quarrying gained 4.3 percent and electricity rose 2.7 percent.

On a yearly basis, industrial production decreased a working-day adjusted 9.9 percent in July.

On an unadjusted basis, industrial production rose 8.0 percent monthly in July and fell 6.5 percent from a year ago.

The unemployment rate fell to 5.57 percent in August from 5.66 percent in July.

In the same month last year, the jobless rate was 3.84 percent.

The registered jobless rate increased to 9.14 percent in August from 7.0 percent in the same month last year. In July, the rate was 9.19 percent.

The number of registered unemployed decreased to 4.75 million persons in August from 4.78 million in the previous month.

The youth unemployment rate, which is applied to the 18 to 24 age group, climbed to 13.3 percent in August from 8.9 percent in the same period last year.

Compared to the same month last year, industrial production fell 7.7 percent in July after a 12 percent slump in June, revised from 12.3 percent. Economists had expected an 8.2 percent decline. Output had been decreasing in double-digits since March. In the EU, industrial production grew 4.1 percent month-on-month after a 9.6 percent increase in the previous month. On a year-on-year basis, production decreased 7.3 percent following an 11.3 percent slump in June. Among the member states, the biggest monthly increases were registered in Portugal, Spain and Ireland, while the worst falls were observed in Denmark, Latvia and Belgium.

The euro was trading at 125.69 against the yen, 1.0764 against the franc, 1.1857 against the greenback and 0.9231 against the pound around 5:02 am ET.

Ahead of the data, the euro traded mixed against its major rivals. While the euro held steady against the yen, it rose against the greenback and the franc. Against the pound, it fell.

The euro was worth 125.67 against the yen, 1.0766 against the franc, 1.1858 against the greenback and 0.9234 against the pound as of 4:55 am ET.

The Ulster Bank construction Purchasing Managers' Index fell to 44.0 in August from 53.2 in July. Any reading below 50 indicates contraction in the sector.

"Following two months of post-lockdown increases in activity in June and July, respondents reported that overall activity slipped back into contraction territory last month, albeit that the pace of contraction was nowhere near as severe as during the peak of the crisis in April and May," Ulster Bank's Chief Economist for Ireland Simon Barry said. "High levels of market uncertainty linked to the effects of the pandemic and some recent signs of a cooling in the wider economy's recovery momentum weighed on the August results, including in relation to sentiment about the sector's future prospects," Barry said.

All three categories of activity decreased in August. Commercial activity and housing activity declined sharply, while civil engineering activity contracted at a softer pace.

New orders declined in the August due to the market uncertainty as a result of COVID-19 pandemic and its aftermath.

Purchasing activity declined modestly for the fist time in three months in August, while suppliers' delivery time lengthened further, albeit at a softer pace.

Input cost increased for the fourth straight month in August, but the rate of inflation eased than series average.

Oxford University announced on Saturday that it is resuming a trial for a coronavirus vaccine it is developing with AstraZeneca. The trial was halted last week following an unexplained illness of a patient in the U.K.

AstraZeneca said clinical trials have resumed in the U.K. following confirmation by the Medicines Health Regulatory Authority.

Investors await the Federal Reserve's monetary policy meeting due this week for more direction. Economists expect the bank to leave rates and quantitative easing unchanged.

The greenback dropped to 1.2829 against the pound and 1.1854 against the euro, from its early highs of 1.2771 and 1.1832, respectively. The greenback is seen finding support around 1.31 against the pound and 1.20 against the euro.

The greenback fell to 4-day lows of 106.01 against the yen and 0.6702 against the kiwi, after rising to 106.17 and 0.6657, respectively in early deals. The currency is likely to locate support around 104.00 against the yen and 0.68 against the kiwi.

The U.S. currency eased to 0.7288 against the aussie, from a high of 0.7269 set at 8:45 pm ET. On the downside, 0.75 is possibly seen as its next support level.

Reversing from a high of 1.3194 hit at 8:30 pm ET, the greenback edged down to 1.3157 against the loonie. The next possible support for the greenback is seen around the 1.29 level.

The greenback fell back to 0.9083 against the franc, not far from a session's low of 0.9080 seen earlier in the session. Next near term support for the greenback is likely seen around the 0.88 level.

The kiwi firmed to a 4-day high of 1.7683 against the euro and a 6-day high of 1.0870 against the aussie, off its early lows of 1.7766 and 1.0927, respectively. The kiwi may find resistance around 1.74 against the euro and 1.06 against the aussie.

The kiwi reached as high as 71.08 against the yen, up from a low of 70.64 recorded at 5:00 pm ET. If the kiwi rises further, it may find resistance around the 72.00 level.

Looking ahead, Eurozone industrial production for July will be out in the European session.

The consumer price index rose 0.2 percent year-on-year in August, after a 0.6 percent increase in July.

Prices of cigarettes, refundable prescription medicines, games of chance and wireless telephone services were higher from a year ago.

However, the increase was curbed most by reductions in prices of hotel rooms, fuels and international flights, and average interest rate on housing loans, the statistical office said.

On a month-on-month basis, consumer prices remained unchanged in August, after a 0.35 percent rise in the previous month.

The EU measure of harmonized index of consumer prices, or HICP, remained unchanged monthly and rose 0.3 percent from a year ago in August.

Separate data from the statistical office showed that the retail sales turnover rose by a working day adjusted 1.1 percent annually in July after 1.6 percent fall in June.

At the same time, the retail sales volume increased 2.8 percent annually in July.

In daily consumer goods trade, the working day adjusted turnover increased 5.2 percent in July and the sales volume rose 2.6 percent from the corresponding period of the previous year.