USDCHF Watch: PCE Numbers and Fed Policy Implications

In today's trading session, we are closely observing USDCHF for a potential selling opportunity around the 0.86500 zone. The latest release of the Personal Consumption Expenditures (PCE) data revealed an increase of 0.2%, slightly surpassing the previous 0.1% reading and meeting the forecast of 0.2%. However, when comparing this to the trend of recent months, where we've seen fluctuations between 0.1% and 0.3%, it indicates a relatively modest inflationary pressure. This moderate uptick in inflation might raise concerns about the Federal Reserve's upcoming monetary policy decisions, particularly as it deliberates on tapering its asset purchases and potential interest rate hikes. Traders are likely to scrutinize this data closely, as any indication of subdued inflation could weigh on the USD and cast doubt on the Fed's hawkish stance in the near term.