USD/CHF approaches four-week highs at 0.8150 ahead of the US PCE Inflation report

• US Dollar downside attempts remain capped above 0.8100, keeping the 0.8150 high at a short distance.
• Solid US GDP and employment data and a hawkish Fed gave an additional boost to the Greenback on Wednesday.
• Later today, US PCE inflation data is expected to support the Fed's "higher for longer" stance.

The US Dollar maintains its bid tone intact against the Swiss Franc, holding gains after a nearly 3% rally over the last few days. Downside attempts seen earlier in the day have been contained above 0.8110, and the pair trims losses ahead of the PCE Price Index report, approaching a four-week high, at 0.8150

The Greenback rallied across the board on Wednesday, after the Federal Reserve maintained its benchmark interest rate on hold and pushed back hopes of upcoming rate hikes. Fed Chairman Jerome Powell reiterated his "patience" rhetoric, as he assessed that the impact of tariffs might take months to manifest.  

Strong US data and a hawkish Powell boost the USD

Previous macroeconomic releases endorsed the US central bank's stance, as US GDP beat expectations, despite the decline in private sector investment and relatively soft consumer spending figures.

Also on Wednesday, ADP employment figures beat expectations with a 104,000 increment on net private payrolls in July, well beyond the 78,000 increase forecasted by market analysts and reversing a 23,000 decline in June.

Dollar bears remain in check on Thursday with all eyes on July's PCE Price Index figures. The headline inflation is expected to have accelerated to a 2.5% year-on-year reading, from the previous 2.3% with the Core PCE Price Index steady at 2.7%. All in all figures are consistent with the Fed's "higher for longer" view and broadly USD-supportive.