Sept 2 Reuters The dollar edged down on Monday but remained within striking distance of its highest level in almost two weeks as investors39; focus moved to a U.S. jobs report due at the end of this week.

U.S. payrolls, due on Friday, will be crucial after Federal Reserve chair Jerome Powell pivoted from a battle against inflation to a readiness to protect against job losses.

Analysts say the job figures will determine the magnitude of the Federal Reserve39;s expected rate cut. Markets have already priced in for weeks a cut of 25 basis points.

The greenback advanced to its strongest since Aug. 20, buoyed by a rise in longterm Treasury yields to the highest since midAugust as inflation data pointed to a smaller rate cut and gross domestic product figures indicated the economy was on a solid enough footing to give the Federal Reserve room to be less aggressive in easing its policy.

Traders currently see a 33 chance of a 50bps Fed rate cut this month, while fully pricing in a quarterpoint cut. A week earlier, expectations were 36 for the larger reduction.

These days, it is all about economic figures, said Athanasios Vamvakidis global head of forex strategy at BofA.

We expect the dollar to weaken in the second half of this year, but the market shouldnt get too excited about it, he added, flagging a euro target at 1.12.

The U.S. economy is slowing but is still doing much better than the rest of the world.

The dollar index measure against six major peers weakened by…