USD/CHF trades slightly higher around 0.8030 ahead of US PCE inflation data

• USD/CHF trades marginally higher around 0.8025 as the US Dollar ticks up ahead of the US PCE inflation data for July.
• Economists expect the US core PCE to have grown at a faster pace of 2.9% on year.
• The Swiss economy grew at a moderate pace of 0.1% in the second quarter of the year.

The USD/CHF pair attracts slight bids and rises to near 0.8025 during the European trading session on Friday. The Swiss Franc pair ticks up as the US Dollar (USD) trades marginally higher ahead of the United States (US) Personal Consumption Expenditure Price Index (PCE) data for July, which will be published at 12:30 GMT.

During the press time, the US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, edges higher to near 98.00.

Investors will pay close attention to the core PCE inflation data - which excludes volatile items such as food and energy - as it is closely tracked by Federal Open Market Committee (FOMC) members for decision-making on interest rates.

The core PCE inflation is expected to come in higher at 2.9% on an annualized basis, against 2.8% in June. On a monthly basis, the underlying inflation is estimated to have grown steadily by 0.3%. The inflation data will influence market expectations for the Federal Reserve's (Fed) monetary policy outlook.

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

In the Swiss economy, the Gross Domestic Product (GDP) cooled down in the second quarter of the year, paving the way for the Swiss National Bank (SNB) to adopt an ultra-loose monetary policy. The data released on Thursday showed that the Swiss economy rose by 0.1%, as expected, slower than the 0.4% growth seen in the previous quarter.