Market consensus forecasts data showing 170,000 more persons were employed last month, compared with the 138,000 increase in April. A significantly lower number would be dollar negative, but a higher number would give the fed more ammunition to raise interest rates.

GBP

The sterling fell against the dollar, as the US interest rate advantage over the UK looked set to widen. In the UK, recent data has cast some doubt on a rise in the key Bank of England interest rate since housing data and manufacturing data was weaker than expected.

USD

The dollar rose after minutes of the Federal Reserve's latest policy meeting raised expectations of a US hike in June to bring the cost of borrowing to 5.25 per cent. Investors are awaiting a closely watched jobless report that could help the Fed decide whether to lift interest rates again later this month.

EUR

The euro was sharply higher after more, strong euro data was released, further intensifying speculation that the ECB could raise interest by a more aggressive 50 basis points next week.

JPY

The Japanese Finance Minister said countries should not rely just on currencies to address global imbalances. He also said that a key talking point for the G8 in St Petersburg in June, would be the price of oil, which is becoming a major concern for all members of the G8.

Compiled by Commercial Foreign Exchange Travelex Malta. (Free phone: 800 77 33 22) www.travelex.com.mt