EUR/GBP holds positive ground near 0.8650, investors await UK GDP data 

• EUR/GBP remains firm around 0.8650 in Wednesday's early European session. 
• EU ZEW Economic Sentiment plunges in August, which might cap the EUR's upside. 
• Investors pare bets on BoE rate cut after UK jobs data. 

The EUR/GBP cross trades on a stronger note near 0.8650 during the early European session on Wednesday. The Euro (EUR) edges higher against the Pound Sterling (GBP) on potential talks between US President Donald Trump and Russian President Vladimir Putin in Alaska on Friday to end sanctions. The preliminary reading of the UK Gross Domestic Product (GBP) for the second quarter (Q2) will be closely watched later on Thursday. 

The United States (US) and Russia have agreed to hold a meeting between Trump and Putin on Friday to discuss how to end the war in Ukraine. Trump announced the meeting a week beforehand, the same day as his deadline for Russia to agree to a ceasefire in Ukraine or face more US sanctions.

Trump announced the meeting a week in advance, the same day he set a deadline for Russia to agree to a ceasefire in Ukraine or face further US sanctions. Meanwhile, optimism surrounding US-Russia talks continues to underpin the shared currency. 

However, the downbeat ZEW Survey of Expectations for August from the Eurozone and Germany released on Tuesday might cap the upside for the cross. The Eurozone ZEW Economic Sentiment plunged to 25.1 in August from 36.1 in July, while Germany's ZEW Economic Sentiment fell to 34.7 in August versus 52.7 prior. Both readings came in below the market consensus. 

On the GBP's front, the UK jobs market has weakened again, but wage growth remains strong, prompting traders to trim their bets on the possibility of another Bank of England (BoE) rate cut this year. Markets are now fully pricing another reduction only in February 2026, according to LSEG data. The cautious stance of the UK central bank might lift the GBP against the EUR in the near term.