Foreground colour stuck grey

I want to draw over an imported image using psd, but the paint tool foregound colour is keeps reverting to grey no matter what colour I select. I am in mode RGB. I've tried changing the image import options as follows:

1. I started the document by opening psd, file-open, selecting my jpeg.

2. I then tried opening psd, a new document (rgb mode), then 'place embedded' my jpeg I want to draw over

3. Tried options 1 and 2 with my image reformatted from jpeg to png