EUR/GBP holds positive ground near 0.8650 as UK economy stalls in July

• EUR/GBP gains ground to around 0.8650 in Friday's early European session.
• UK GDP arrived at 0% MoM in July, as expected. 
• The European Central Bank left rates unchanged at its September meeting on Thursday.

The EUR/GBP cross trades on a positive note near 0.8650 during the early European session on Friday. The Pound Sterling (GBP) remains weak against the Euro (EUR) after the release of UK Gross Domestic Product (GDP) data. Traders will take more cues from the speech from the European Central Bank (ECB) policymaker Joachim Nagel.

Data released by the Office for National Statistics (ONS) on Friday showed that the UK economy stalled in July, compared to a 0.4% growth in the previous reading. This figure came in line with the estimation. The GBP attracts some sellers in an immediate reaction to the discouraging UK GDP report.

Meanwhile, Industrial Production declined 0.9% MoM in July versus a 0.7% rise prior. This reading was worse than the market consensus of 0%. On an annual basis, the UK Industrial Production came in at 0.1% in July, following a 0.2% increase in June, weaker than the 1.1% expected. 

The ECB held its rate on the so-called deposit facility at 2.0% at its September policy meeting on Thursday and maintained an upbeat view on growth and inflation. Traders raise bets that the ECB is done cutting rates, which could underpin the shared currency in the near term. Money markets are currently pricing in nearly a 40% odds of one last rate reduction by next spring, less than before the rate decision, according to Reuters.