Dec 2 (Reuters) - EUR/USD sank on Monday on growing concerns about stagnant euro zone growth and a possible government collapse in France.

France's far-right leader Marine Le Pen said her National Rally party would vote for all no-confidence votes after Prime Minister Michel Barnier said he would try to ram a social security bill through parliament without a vote.

Euro zone manufacturing activity fell sharply in November, dashing hopes of an imminent recovery and Italy car sales were down 10.82% year-on-year in November.

The yen outperformed amid haven-linked demand while the dollar was lifted by data showing manufacturing activity improved in November.

Atlanta Federal Reserve President Raphael Bostic said he has an open mind about whether to cut interest rates again at the Fed's December meeting, with upcoming data on jobs important in shaping the decision.

Israeli Prime Minister Benjamin Netanyahu said Israel would respond "strongly" after the Iran-backed Lebanese armed group Hezbollah carried out a strike on a military position.

The pound was lower after a gauge of British manufacturing activity pointed to the sharpest contraction in nine months.

The loonie was mixed after a report that Canadian manufacturing activity increased at the fastest pace in 21 months while concerns potential U.S. tariffs could hamper China growth weighed on the Australian and New Zealand dollars.

Treasury 2-year yields rose 4 basis points as the curve flattened. The 2s-10s curve was down about 2 basis points to -1.2bp.

The S&P 500 rose 0.20% fueled by gains in tech shares.

Oil was little changed on the session with gains capped by concerns that the U.S. Federal Reserve will not cut rates in December.

Gold slid 0.70% amid a stronger dollar and copper was little changed after falling to its lowest level in over two weeks.

Heading toward the close: EUR/USD -0.84%, USD/JPY +0.01%, GBP/USD -0.75%, AUD/USD -0.74%, DXY +0.71%, EUR/JPY -0.88%, GBP/JPY -0.81%, AUD/JPY -0.85%.

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(Editing by Burton Frierson Reporting by Robert Fullem)

((robert.fullem@thomsonreuters.com;))