By FXEmpire.com
The EUR/CHF was biased to the downside on Tuesday after the weak growth figures from the euro area which pressured the pair to the downside once again despite fears of intervention.
The pair moved to the downside after Germany and the euro area reported less than expected growth in the second quarter which slowed strongly after an explosive first quarter start.
With the opening bullish gap for the pair the downside tendency is also seen to cover the gap, and surely with the prevailing tension over the Franco-German meeting which investors will eye into Wednesday.
The optimism over the meeting between Merkel and Sarkozy was dismissed as Germany said that a common bond proposal was still not the topic to discuss and that the meeting will concentrate on means to support fiscal balance and enforce strict fiscal consolidation rules.
On Wednesday, we expect the pair to continue to fluctuate on the back of the late comments from the leaders meeting, though the gains will be limited for swissy still amid the fear of any sudden moves by the Swiss National Bank.
In other data, at 08:00 GMT the current account for June will be released after the recorded deficit of 5.2 billion in May.
At 09:00 GMT the euro zone CPI is due and expected to hold at 2.5% on the year with 0.6% drop on the month and the core CPI to rise an annual 1.7%.
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