(fxcue news) - The Swiss franc weakened against most major currencies in the European session on Friday, as traders now cautiously look ahead to the release of closely watched readings on U.S. consumer price inflation later in the day. The data is not likely to impact forecasts for an interest rate cut by the U.S. Fed next month but could impact expectations regarding how quickly the central bank will lower rates. The July Personal Consumption Expenditures report along with separate reports on Chicago-area business activity and consumer sentiment will be in the spotlight later today, heading into the long Labour Day weekend and the release of key employment data next week. The U.S. Fed's favored PCE inflation gauge may reinforce views that a September rate cut is imminent. In economic news, data from the KOF Swiss Economic Institute showed that the Switzerland KOF Leading Indicator came in at 101.6 in August, up from 101.0 in July. Economists expect the leading indicator to be at 100.6. In the European trading today, the Swiss franc fell to a 2-day low of 0.9405 against the euro and a 3-day low of 1.1181 against the pound, from early highs of 0.9380 and 1.1149, respectively. If the franc extends its downtrend, it is likely to find support around 0.95 against the euro and 1.13 against the pound. Against the U.S. dollar, the franc edged down to 0.8487 from an early high of 0.8467. On the downside, 0.86 is seen as the next support level for the franc. Meanwhile, the Swiss franc rose to 171.07 against yen, from an early 3-day low of 170.76. The franc is likely to find resistance around the 172.00 region. Looking ahead, Eurozone flash CPI data for August and unemployment rate for July are due to be released at 5:00 am ET in the European session. In the New York session, Canada GDP for the second quarter, U.S. PCE index for July, U.S. personal income and spending data for July, U.S. Chicago PMI data for August, U.S. University of Michigan's consumer sentiment for August, Canada budget balance for June and U.S. Baker Hughes oil rig count data are slated for release.