EUR/GBP remains above 0.8815 amid generalised Pound weakness

• Euro reversal from 0.8865 highs against the Pound finds support at 0.8815.
• Ongoing concerns about the UK's fiscal debt and weak macroeconomic data are weighing on the Pound.
• Eurozone Q3 GDP confirmed previous estimations, and the trade surplus widened in September.

The Euro-Pound rally from Monday's lows at 0.8770 has been capped nearly 100 pips higher, at 0.8865 on Friday, with the Euro struggling amid the risk-off sentiment, although downside attempts remain contained above Thursday's low, at 0.8815, as dismal UK data and renewed fiscal concerns keep GBP bulls in check..

The Sterling lost ground on Thursday and Friday's early trading, after a Financial Times report suggested that the UK Prime Minister, Keir Starmer, and Chancellor Rachel Reeves are considering ditching their plan to raise income tax at the November 26 Budget. This would have a positive impact on the economy, but leaves the country's fiscal issues unresolved.

Furthermore, data released on Thursday revealed that the UK economy slowed down to levels close to stagnation in the third quarter, with Industrial and Manufacturing Production slumping, which has strengthened the case for a BoE rate cut in December.

In the Eurozone, Gross Domestic Product data released on Friday confirmed the 0.2% growth shown in previous estimations. Apart from that, the region's trade surplus widened to EUR 19.4 billion in September from August's 1.9 billion. The impact of these figures on the Euro, however, has been muted.

Also on Friday, ECB council member, and Governor of the Bank of Latvia affirmed that the impact of US tariffs has been softer-than-expected and that interest rates will remain unchanged unless the context changes significantly.