UK Gross Domestic Product (GDP) data released early in the European session showed Britain's economy stagnating in July after recording a relatively strong increase the previous month, indicating that economic momentum is slowing.
Annual growth of 1.4% was also slightly below market expectations, reflecting the continued challenges from weak global demand and the impact of trade tariffs that are starting to weigh on export activity.
The domestic sector is also facing a weakening labor market environment, signaling that support from household spending is likely to become more limited at the end of the third quarter of this year.
The Pound currency did not show significant movement after the data was released, but the 0% figure is likely to put pressure on the Bank of England (BOE) to maintain a tight policy stance if growth continues to slow.
Conversely, expectations that the central bank may have to consider cutting interest rates earlier than expected added to negative sentiment towards the Pound, which risks remaining weak against the US dollar in the near term.
