EUR/USD Drops to Near 1.1250 on Greece

The euro fell on Tuesday as traders looked beyond an endless stream of headlines indicating progress in Greek debt talks while the dollar gained traction from solid U.S. housing data.

In Asia, a survey on Chinese manufacturing showed that factory activity maybe stabilizing but not stopped contracting, undermining commodity currencies.  The common currency dropped 0.6 percent in Asia to trade at $1.1268, falling more than a full cent from Monday’s high of $1.14105.

Despite more optimism on Greece in global equity markets and elsewhere, a cautious mood prevailed in the currency market as a deal remains elusive and as the euro zone’s economic outlook pales in comparison to others.