The Swiss franc weakened against its most major opponents in the European session on Tuesday amid rising European shares, as utility and banking stocks rose despite concerns about Italy's fragile banking system.

Investors continue to keep an eye on the latest developments in Italy after President Sergio Mattarella accepted Prime Minister Matteo Renzi's resignation, but asked him to remain in power until after the 2017 budget.

Investors appeared hopeful that a caretaker government in Italy would help alleviate fears about political uncertainty in the country and its ongoing measures to rejuvenate the health of the banking sector.

The European Central Bank's monetary policy decision is due on Thursday, with investors expecting the bank to extend QE by six months and maintain the size of asset purchase programme. The bank will also publish latest staff forecasts for inflation and economic growth.

Data from the Federal Statistical Office showed that Switzerland's consumer prices continued its downward trend in November.

Consumer prices declined 0.3 percent year-on-year in November, following a 0.2 percent fall a month ago. Prices were forecast to fall 0.2 percent.

This was the biggest fall since June, when prices slid 0.4 percent.

The franc showed mixed trading in the Asian session. While the franc held steady against the euro and the greenback, it fell against the pound. Against the yen, the franc climbed.

The franc dropped to 1.0091 against the greenback, off its early high of 1.0050. If the franc extends slide, 1.02 is likely seen as its next support level.

The franc declined to 1.2865 against the pound, reversing from an early high of 1.2789. The franc is likely to find support around the 1.30 zone.

Data from the British Retail Consortium showed that the U.K. like-for-like sales gained just 0.6 percent on year in November.

That was well shy of forecasts for an increase of 1.7 percent, which would have been unchanged from the October reading.

The franc pared gains to 112.74 against the Japanese yen, from a high of 113.41 hit at 4:45 am ET. The next possible downside target for the franc-yen pair may be located near the 111.5 area.

Official data showed that Japan's labor cash earnings added just 0.1 percent on year in October.

That was shy of expectations for an increase of 0.2 percent following the downwardly revised flat reading in September.

The franc held steady around 1.0835 against the euro, following a decline to 1.0848 at 5:45 am ET. The euro-franc pair finished yesterday's deals at 1.0826.

Data from Eurostat showed that gross domestic product expanded 0.3 percent sequentially in the third quarter, the same pace of growth as seen in the second quarter.

On a yearly basis, GDP growth held steady at 1.7 percent. However, the rate was revised up from the flash estimate of 1.6 percent.

Looking ahead, U.S. trade data, factory orders and durable goods orders - all for October are due in the New York session.

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