USD/CHF eases from 0.8000 with investors bracing for US PCE Inflation 

• The US Dollar is trimming gains on cautious markets and retreats from highs above 0.8000.
• A raft of better-than-expected US macroeconomic figures dampened hopes of Fed easing on Thursday.
• Federal Reserve policymakers maintain wide divergences on the near-term path for monetary policy.

The US Dollar is trimming previous gains in the early European session on Friday, and the USD/CHF has pulled back from three-week highs above 0.8000, yet with its immediate bullish trend intact, and downside attempts contained at 0.7990 for now.

The Dollar took a boost on Thursday by a stream of better-than expected US Data, which eased concerns about an economic slowdown and forced investors to reassess their hopes of a steep Fed easing cycle.

Upbeat US data boosted the US Dollar on Thursday

Data from the Commerce Department showed that the US Economy grew at a 3.8% annual rate in the second quarter, up from previous estimations of a 3.3% growth and a significant rebound after the first quarter's 0.5% contraction.

The upbeat GDP data came alongside an unexpected decline in weekly jobless claims, which fell to their lowest levels in nearly two months, and a solid recovery of Durable Goods Orders in August. Investors were cheered by the improving outlook for the labour market and business investment, and the USD rose across the board.

Meanwhile, Fed speakers continued showing their divergences. San Francisco Fed President, Mary Daly, reiterated the need to ease monetary policy further in order to support employment, while the Chicago Fed president warned about aggressive rate cuts, and Fed Miran, Trump's pick to the committee, kept pressuring for a half-point cut at October's meeting.

Against that backdrop, investors are awaiting the US PCE Prices Index release, due later today, for further insight into the bank's forward guidance. The market consensus anticipates a moderate uptick in headline inflation to 2.7% in August from 2.5% in July, with the core inflation steady at 2.9%.