SINGAPORE, Sept 4 Reuters The dollar drifted in cautious trading on Monday as investors weighed U.S. jobs data that showed some signs of cooling, boosting expectations that the Federal Reserve was likely at the end of its monetary tightening cycle.

Against a basket of currencies, the dollar inched 0.048 lower to 104.18 but remained close to the twomonth peak of 104.44 it touched on Aug. 25. The index gained 1.7 in August, snapping its twomonth losing streak.

With U.S. markets closed on Monday, liquidity is likely to be thin and traders hesitant in placing large bets.

Data on Friday showed U.S. job growth picked up in August, but the unemployment rate jumped to 3.8, while wage gains moderated. The economy created 110,000 fewer jobs than previously reported in June and July.

The Goldilocks metaphor is much used and abused in economic and financial circles, but in relation to the various 39;soft landing39; signals emanating from the report, on this occasion it does seem entirely appropriate, said Ray Attrill, head of foreignexchange strategy at National Australia Bank.

A string of economic data highlighting moderating inflation as well as an easing labour market have added to the impression the U.S. economy is cooling without slowing sharply, reinforcing hopes that the economy is set for a soft landing.

However, Citi strategists are warning of a harder landing, saying in a note that sticky wage and price inflation will lead to higherforlonger policy rates and an…