Investing.com -- EUR/USD fell for the third consecutive session to slip below at the close of trading on Tuesday, in spite of positive developments in Greek Bailout talks which provided increased optimism that a comprehensive deal could be reached before the end of the summer.
The currency pair traded between 1.0879 and 1.0987 during Tuesday's session, before settling at 1.0886 – down 0.5E9% on the session. The euro closed lower against its American counterpart for the sixth time in seven sessions, closing under 1.09 for the first time since July 20. Over the last month of trading, the euro is down approximately 2% against the dollar.
EUR/USD likely gained support at 1.0808, the low from July 20 and was met with resistance at 1.1131, the high from July 27.
On Tuesday afternoon, Greek officials said they were confident a deal on a comprehensive bailout could be completed over the next two weeks before it owes a €3.5 billion loan repayment to the European Central Bank (ECB) on August 20. If a deal is not completed, Greece will likely need to secure a second round of bridge financing in order to make the payment on time.
Greece finance minister Euclid Tsakalotos is expected to conclude week-long discussions with officials from the International Monetary Fund, European Commission and ECB at the end of this week. Last month, Greece and its international creditors agreed on the framework of a deal that could provide the cash-strapped nation with up to €86 billion over a period of three years needed to stave off bankruptcy. Officials from both sides of the negotiating table characterized Tuesday's talks as a step in the right direction. In addition, the European Council announced on Tuesday that it has approved a change in the European Stability Mechanism (ESM) that could provide Greece with additional bridge financing, if necessary.
In the U.S., factory orders for the month of June rose 1.8%, just above analysts' expectations for a 1.7% gain. A surge in civilian aircraft orders by more than 60% on a monthly basis, as well as increases in furniture and automobile orders helped bolster the overall reading. In May, factory orders declined by 1.0% on a month-over-month basis as aircraft orders fell by 32% in comparison with its April level.
The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, fell to an intraday low of 97.31, before ticking up to 98.04, up 0.48% on the session. Yields on U.S. 10-Year Treasuries surged five basis points to 2.194%.