After the UK budget was announced, the pound's implied volatility hit a 16-month low.

In the options market, the cost of hedging against significant fluctuations in the British pound has dropped significantly. Data from the London Stock Exchange Group shows that the one-month and three-month implied volatility of the British pound against the US dollar has reached a 16-month low. Mitsubishi UFJ Bank's Lee Hardman stated in a report that last week's UK budget approval reflects reduced concerns among investors about larger sell-offs of the pound. He mentioned that since the budget did not have a negative impact on UK government bonds, the pound has continued to regain lost ground. This has encouraged speculators to reduce their short positions in the pound. According to data from the London Stock Exchange Group, the pound earlier reached a one-month high of $1.3359, while the euro overnight reached a one-month low of 0.8731.