Investing.com -- EUR/USD fell modestly on Thursday ahead of a critical U.S. jobs report, as worries related to cascading global bond prices somewhat eased.
The euro fell 0.0084 or 0.74% to 1.1266 against the dollar in U.S. afternoon trading, slightly above session-lows of 1.1238. EUR/USD reached a high of 1.1392 in the European morning session on a day of choppy trading.
Although the euro has fallen against the dollar in four of the last six sessions, it is still up more than 3.5% on its American counterpart over the last two weeks. On Wednesday, EUR/USD moved above 1.13 for the first time since late-February.
Yields on U.S. 10-Year Treasuries fell six basis points to 2.18, snapping a four-day streak. Earlier in the session, the yield reached a two-month high at 2.312%. In Europe, yields on the German 10-Year bunds remained flat at 0.59, while yields on France 10-Year bonds fell mildly by one basis point to 0.89. On Wednesday, prices on 10-year German and 10-year French bonds moved higher for the eighth consecutive session.
The U.S. Department of Labor said on Thursday in a weekly report that initial jobless claims last week rose modestly by 3,000 to 265,000. A week earlier initial claims unexpectedly fell by 34,000 to 262,000 defying expectations for a higher reading after the figure neared 300,000 for the week ending April 18. A number of readings in the report neared a 15-year low, including the four-week average for initial claims, which dropped by 4,250 to 279,500.
Analysts have forecast a 224,000 uptick in nonfarm payroll jobs for April when the Labor Department releases its monthly jobs report on Friday morning. In March, nonfarm jobs increased by a tepid 126,000, as employment levels in major industries such as financial activities, government, manufacturing and wholesale trade remained relatively unchanged.
In February the economy added 260,000 nonfarm jobs, building on strong gains over the prior two months amid increases in construction, goods-producing and food services positions. When the February report was released on Mar. 6, the euro fell more than 1.65% against the dollar, as the optimistic data signaled the possibility of a sooner than expected interest rate hike from the Federal Reserve.
The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, rose 0.61% to 94.75, one day after falling to 93.99, the lowest level since late-February.
As polls closed in the United Kingdom's general election on Thursday night, an exit poll by the BBC, Sky News and ITN projected a slight lead for the Conservative Party. British prime minister David Cameron, who has led the Conservative Party since 2005, has promised a referendum on the United Kingdom's membership in the European Union if he is re-elected.
GBP/USD surged 1.27% on Thursday evening to 1.5436.