Sterling's slide deepens after the Prime Minister's comments renew fears of a no-deal Brexit.Read more
Pound Sterling (GBP)
GBP/EUR - Today's data summary
GBP/JPY - Today's data summary
GBP/USD - Today's data summary
It had already been gaining ground in early trading, trading around $1.3180, but the economic data spurred it briefly above $1.32.
However, traders are expecting the pound to be volatile, as traders react to news coming from the EU summit in Salzburg where Brexit is under discussion.
Any news that looks like the UK is going to get an exit agreement tends to boost the pound and anything that raises prospect of the UK crashing out of the EU has the opposite effect.
The pound is maintaining its lead against the dollar and is trading up 0.60% at $1.3147.
However, sterling's rise might owe more to a weaker dollar amid reports that US President Donald Trump threatened to impose additional tariffs on Chinese goods.
Craig Erlam, senior market analyst at Oanda, said: "The ongoing conflict between the US and China continues to be a primary driver of market sentiment, with investors concerned about the prospect of a full blown trade war as neither side shows a willingness to blink."
Against the euro, however, sterling has had a much more volatile day and is now at €1.1243.
The pound has kicked off the week with some decent gains - earlier it breached $1.31 against the dollar.
Analysts say the currency has been helped by more positive news on Brexit talks.
A report in The Times newspaper said London and Brussels may be getting closer to a solution on what to do about the border between the Republic of Ireland and Northern Ireland.
The first of three EU summits is being held on Thursday, where Brexit will be discussed.
"Sterling could out-perform this week if the EU decide to adopt a more flexible stance on Brexit at the EU summit," said Chris Turner, head of foreign exchange strategy at ING.
The pound has stumbled against the euro. It was trading at €1.1255, but slipped to below €1.1235.
However, against the dollar the pound is trading higher, up two tenths of a cent at $1.3090.
The pound perked-up a bit after the announcement from the Bank of England.
It is trading at $1.3060 up from around $1.3040 before the announcement.
The pound perked up after comments from European Commission President Jean-Claude Juncker. He said that Brussels will work "day and night" to reach a Brexit deal.
The pound was trading lose to $1.30 against the dollar, but rose as high as $1.3045.
The pound bounced around against the dollar after those unemployment figures came out. It had been rising in advance of the figures at 09:30, rose a bit further after they came out, then fell sharply and then recovered.
Against the dollar it's up two tenths of a cent at $1.3046.
Against the euro its little changed at €1.1230.
The pound is up 0.23% against the dollar at $1.3057.
Sterling was given a boost on Monday after the European Union's chief Brexit negotiator Michel Barnier said that a deal with the UK is possible in the next six to eight weeks.
The pound edged down against the euro at €1.1224.