GBP remains firmer, getting a tailwind from the steepening UK curve and volatility in Gilt prices - as we note above the net effect of these tax and spend tweaks could support services inflation prices and thereby push up inflation forecasts over at least the next year or so - limiting the space with which the BoE could ease rates toward neutral next year.

• Move in GBP/USD represents a ~80 pip recovery off the mid-Budget lows, but is partially USD driven - with Brainard's downbeat comments on this Friday's NFP prospects ("we anticipate payroll numbers will be lower this week because of disruptive hurricanes, strike activity"), pressuring front-end of the US yield curve.
• EUR/GBP remains firmer on the day - holding gains of ~20 pips on the day.