Data sets tone for firmer dollar

"We have been on a knife edge," said Lutfey Siddiqi, global head of FX structuring at Barclays Capital in London. "By and large, people have been staying away, waiting for [Friday’s payroll] numbers. Now the dollar bulls have a bit more ammunition."

In six minutes following the announcement of the payrolls data – which, with an increase of 288,000 for April, was way ahead of market expectations of around 170,000 – euro/dollar sank from 1.2140 to 1.1952. Cable fell from 1.8040 to 1.7885, as, o