EUR/USD Drops to 1.12 as Greek Debt Talks Break Down

The euro lurched lower first thing in Asia on Monday after efforts on ending a deadlock between Greece and its creditors broke up in failure over the weekend.

Tellingly, the talks on Sunday lasted less than an hour, suggesting the differences between the two parties may be too wide to bridge.  “With no deal in sight, expectations for default and exit are likely to rise sharply in the days ahead,” said Elsa Lignos senior currency strategist at RBC.

The common currency fell 0.3 percent to $1.1227, retreating further from last week’s peak of $1.1387. Against the yen, the euro slid 0.5 percent to 138.33, well off a recent high of 141.02.