EUR/GBP holds positive ground above 0.8800 as UK economy slows to 0.1% in Q3

• EUR/GBP strengthens to near 0.8835 in Friday's early European session. 
• UK preliminary GDP grew 0.1% QoQ in Q3 2025, weaker than expected. 
• Weaker UK GDP data and the ECB's cautious stance create a tailwind for the cross. 

The EUR/GBP cross gains ground to around 0.8835 during the early European session on Thursday. The Pound Sterling (GBP) weakens against the Euro (EUR) after the release of UK Gross Domestic Product (GDP) data. The Eurozone Industrial Production report for September will be published later on Thursday. 

Data released by the Office for National Statistics (ONS) on Thursday showed that the UK economy grew 0.1% QoQ in the third quarter (Q3) of 2025, compared to a 0.3% growth in the second quarter. This figure came in weaker than the estimation of a 0.2% increase in the reported period.  

Meanwhile, the UK GDP expanded 1.3% YoY in Q3 versus 1.4% prior. This reading was below the market consensus of 1.4%. The monthly UK GDP arrived at -0.1% in September, following 0% in August (revised from a 0.1% growth), worse than the 0% expected. The GBP attracts some sellers in an immediate reaction to the downbeat UK GDP data. 

The cautious tone from the European Central Bank (ECB) might contribute to the EUR's upside. ECB President Christine Lagarde suggested the central bank is largely finished with rate cuts. Meanwhile, ECB policymaker Isabel Schnabel said there is "positive underlying momentum" in the euro area economy but noted that services inflation remains sticky. She added that inflation risks are "tilted slightly to the upside," emphasizing that policymakers should focus on core inflation dynamics.