"Sterling markets will continue to digest yesterday’s Budget delivered by Chancellor Jeremy Hunt as well as the broader global environment.
Markets remain ambivalent whether the Bank of England will raise interest rates next week," said Hann-Ju Ho, senior Economist, Commercial Banking at Lloyds Bank.
The European Central Bank (ECB), meanwhile, is a little behind the BoE in its quest to fight inflation.
Traders attach a 60% chance of the ECB raising rates by 50 bps on Thursday, with a 40% chance of 25 bps.
Money markets show investors expect ECB rates to peak around 3% later this year, compared with a peak of 4% just over a week ago.