Sterling rose in American trade away from November 14 lows versus the dollar, following earlier data from Britain and the US, and ahead of a speech by Bank of England Governor Mark Carney in London.
As of 04:47 GMT, GBP/USD rose 0.57% to 1.3247 from the opening of 1.3172, with a session-high at 1.3270, and a seven-month low at 1.3102.
Earlier UK data showed public net borrowing at 3.4 billion pound in May, down from 5.3 billion in April, while analysts expected 5.1 billion.
BoE Policy Decisions
Bank of England voted to hold interest rates at 0.50% and the assets purchase program at 435 billion pounds, by a 6-3 margin, with the three voting to increase interest rates, while all nine voted to hold the assets purchase program.
The BoE maintained its forecasts for a 1.75% growth rate for the UK economy, while noting that a cut to the assets purchase program will have to follow an interest rate hike first, at least to 1.5%, and in a gradual manner.
Otherwise, BoE governor Mark Carney is due to speak at the Mansion House dinner, in London, with investors looking for further clues on the future of monetary policy and interest rates.
Mixed US Data
Earlier US data showed unemployment claims fell 3 thousand to 218 thousand from 221 thousand, beating forecasts of 220K, while continuing claims for the week ending June 9 rose 22K to 1.723 million from 1.701 million, above expectations of 1.710 million.
The Philly Manufacturing Index slipped to 19.9 from 34.4 in May, missing forecasts of 29.0.