The euro edged lower today and is on track for its biggest weekly drop in three weeks as a slide in core government bond yields ramped up pressure for fresh stimulus policies from global central banks.
Germany's 10-year Bund yield breached the European Central Bank's deposit rate of -0.40%.
Analysts say this level acts as a psychological barrier even though shorter-dated German bond yields already trade well below it.
The yield on 10 year Irish bonds also fell yesterday and stood at about 0.04%.
But despite the relentless drop in yields, the single currency has been relatively well supported at around $1.12.
It has traded at above this level since early June and 1.5% above a 2019 low of $1.1055 hit in late May.
Analysts say the euro's surprising strength is due to concerns that any stimulus from the European Central Bank after years of negative policy rates and multiple rounds of bond purchases may be dwarfed by likely big rate cuts from the Fed.
The euro today edged 0.1% lower at $1.1273 and is on track for a weekly loss of 0.8% versus the dollar, its biggest weekly loss since mid-June.
Expectations of big US rate cuts will not be shaken by jobs data due later, with economists polled by Reuters predicting US non-farm payrolls to have increased by 160,000 in June from 75,000 in May.
The dollar index against a basket of six major currencies stood little changed at 96.823, having spent the previous day in a tight range as US financial markets were closed for the Independence Day holiday.
Meanwhile, the pound struggled near a two-week low of $1.2557 hit on Wednesday.