ZURICH: The Swiss franc fell versus the euro on Monday as markets awaited the outcome of an unpredictable Italian election which has raised concern about renewed political stalemate in the euro zone's third largest economy.
The franc slipped 0.2 percent against the euro to trade at 1.2283 by 0826 GMT compared to the New York close. Against the dollar, the franc was steady at 0.9291.
"The Italian elections are on the cards and there are first signs that the uncertainty could be coming to an end," said Jan Poser, an economist at Sarasin.
UBS economist Reto Huenerwadel said the recent price action in the euro-Swiss franc cross suggested markets had a comparably constructive outlook on the single currency bloc and its politics.
In Switzerland, attention will focus on a raft of economic data due to be published this week.
Analysts polled by Reuters expect the two leading indicators, the KOF barometer and the Swiss purchasing managers' index, to ease slightly in February.
"Following the encouraging start into '13 as highlighted most notably by the jump in the PMI release, the respective prints for February are likely to include comparably limited follow-through momentum," said Huenerwadel.
Data due on Thursday is also expected to show the Swiss economy flatlined in the fourth-quarter after posting stronger-than-expected growth in the third quarter.
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