LONDON, Sept 11 Reuters Sterling gained slightly versus the dollar on Wednesday, recovering from a dip earlier in the session, but slid against the euro after data showed Britain39;s economy stagnated unexpectedly in July, as manufacturing output fell.

British economic output showed no change in monthonmonth terms in July, as it did in June, data from the Office for National Statistics showed.

A Reuters poll of economists had forecast 0.2 monthonmonth growth in gross domestic product.

We should not worry too much about the miss, analysts at Peel Hunt said in a note, pointing to still healthy forwardlooking business activity surveys and highlighting the known volatility of monthly data, particularly in heavy industries.

Also analysts at JPMorgan said July economy output is not indicative of the trend. However, upside risks to thirdquarter GDP growth have faded, they said.

Deutsche Bank senior economist Sanjay Raja said that after seeing upside risks to thirdquarter GDP growth, relative to the bank39;s baseline of 0.4 quarter on quarter, it now sees downside risks building.

Sterling edged up 0.1 to 1.3093, after sliding to 1.3071 earlier in the session.

The dollar fell to its lowest against the yen this year after investors increased the chances of Democrat Kamala Harris beating Republican rival Donald Trump in November39;s presidential election after a scheduled debate.

The pound fell 0.7 against the yen to 185.05 yen, around its weakest in a month.

Investors…