EUR Holds Gains Against GBP as UK Economy Slows

The EUR/GBP cross held positive ground near 0.8540 during early European trading hours on Thursday, as the British Pound remained weak against the Euro following the release of UK economic data.

The Office for National Statistics reported that the UK economy grew by 0.4% QoQ in the second quarter of 2026, meeting market expectations. On an annual basis, the UK GDP expanded 1.2% YoY in Q2 2026 versus a 0.9% growth prior.

Economists at Deutsche Bank caution that recent strength in the UK economy is unlikely to be sustained through the remainder of the year, citing an energy crisis that will likely catch up with households and businesses in Q3-26.