--Weak German data push euro below $1.44 against the dollar --All eyes now on Merkel-Sarkozy press conference at 1630 GMT --Swiss franc steadier ahead of expected SNB statement Wednesday By Jaya Matta Of DOW JONES NEWSWIRES LONDON (Dow Jones)--The euro reversed some of its overnight gains against the dollar in European hours Tuesday as weaker-than-expected economic data spurred investors into cutting their exposure to the single currency ahead of a meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel. The Swiss franc was steady against both the dollar and euro ahead of an announcement Wednesday from the Swiss National Bank, after the super-strong currency had recoiled sharply in previous sessions amid talks of an imminent peg. Data showed economic growth in Germany slowed to just 0.1% in the second quarter, missing economists' expectations and adding to worries about the euro zone's capacity to find a solution to its mounting debt problems. Subsequent euro zone-wide data showing the 17-member bloc grew by 0.2% in the same three-month period didn't help either. "The data confirm that the region's core economies are in no position to support the periphery, adding to the already significant risk of an eventual euro-zone break-up," Jennifer McKeown of Capital Economics said. All eyes are now on the Merkel-Sarkozy press conference at 1630 GMT, following a meeting where the two are expected to discuss the region's recent turmoil and closer fiscal integration. Sebastien Galy, currency strategist at Societe Generale, said expectations for the meeting aren't overdone and are already being scaled back. But one currency trader said the meeting--much like the SNB announcement--is "heavily skewed to disappointment." Unless the rumors regarding radical steps to weaken the franc are supported by action tomorrow from the SNB, the Swiss currency is likely to strengthen again, analysts at Commerzbank said. Emerging European currencies were under mild pressure, with the Turkish lira resuming its recent weaker trend against the dollar and the Hungarian forint nudging lower against the euro after second-quarter gross domestic data came in much weaker-than-expected. At 1043 GMT, the euro was trading at $1.4382 against the dollar, compared with $1.4445 late Monday in New York, according to trading system EBS. The dollar was at Y76.77 against the yen, compared with Y76.85, while the euro was at Y110.40 compared with Y111.00. Meanwhile, the pound was trading at $1.6388 against the dollar, compared with $1.6391 late Monday in New York. The dollar was at CHF0.7813 from CHF0.7844. The ICE Dollar Index, which tracks the greenback against a basket of currencies, was at 74.100 compared with 74.607 late Monday in New York. -By Jaya Matta, Dow Jones Newswires; 4420-7842-9476; jaya.matta@dowjones.com

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