EUR/GBP rises on UK stagflation scenario looming

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• EUR/GBP reaches a weekly peak, trading at 0.8711, buoyed by concerns over the UK’s economic stagnation and potential stagflation.
• UK GDP forecasts indicate a possible contraction in Q3, with expectations of a -0.1% decrease in QoQ, pressuring the Pound.
• Bank of England’s mixed signals, with Governor Bailey’s cautious stance on inflation, contrast with Huw Pill’s rate cut discussions, adding to GBP volatility.

EUR/GBP gathers traction, extending its gains to three consecutive days, hitting a weekly high of 0.8713, as the economic outlook for the United Kingdom (UK) looks uncertain as stagnation talks gather momentum. The cross-currency pair trades at 0.8711, up a decent 0.14%.