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USD/CHF Trades Slightly Higher Around 0.8030 Ahead Of US PCE Inflation Data
Friday, 29 August 2025 16:02 WIB | USD/CHF |

The USD/CHF pair attracted some bids and strengthened near 0.8025 during the European trading session on Friday (August 29th). The Swiss Franc pair strengthened as the US Dollar (USD) traded slightly higher ahead of the US Personal Consumption Expenditures (PCE) Price Index data for July, which will be released at 12:30 GMT.

At the time of writing, the US Dollar Index (DXY), which tracks the greenback against a basket of six major currencies, was slightly higher near 98.00.

Investors will be closely watching core PCE inflation data – which excludes volatile commodities such as food and energy – as this data is closely watched by Federal Open Market Committee (FOMC) members for interest rate decisions.

Core PCE inflation is expected to be higher at 2.9% year-on-year, compared to 2.8% in June. On a monthly basis, core inflation is expected to grow steadily at 0.3%. This inflation data will influence market expectations regarding the Federal Reserve's (Fed) monetary policy outlook.

Meanwhile, traders see an 85% chance that the Fed will cut interest rates by 25 basis points (bps) to 4.00%-4.25% at its September policy meeting, according to the CME FedWatch tool.

In the Swiss economy, Gross Domestic Product (GDP) slowed in the second quarter of this year, paving the way for the Swiss Central Bank (SNB) to adopt an ultra-loose monetary policy. Data released on Thursday showed that the Swiss economy grew by 0.1%, in line with expectations, slower than the 0.4% growth recorded in the previous quarter. (alg)

Source: FXstreet

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