The surge in non-farm payrolls triggered a dollar jump across the board while risk appetite deteriorated.
US non-farm payrolls increased 272,000 for May, much higher than consensus forecasts of around 180,000, although there was a small downward revision for April to 165,000 from 175,000 reported previously.
The unemployment rate increased to 4.0% compared with expectations of no change at 3.9%.
The labour-market survey reported a decline in employment of over 400,000 for the month while the participation rate declined.
There was a 0.4% increase in average earnings compared with forecasts of 0.3% with a year-on-year increase of 4.1% compared with expectations of 3.9% and after a revised 4.0% previously.
The wages and payrolls data sparked renewed fears over inflation pressure in the economy with fresh doubts whether the Federal Reserve would be able to cut interest rates within the next few months.
Treasuries posted sharp losses with the 10-year yield jumping to above 4.40% from below 4.30% ahead of the data.
Equity markets were subjected to renewed selling pressure and weaker risk appetite would also tend to undermine support for the Pound.
