Concerns around potential tax hikes that may be announced in Wednesday's budget continued to keep the pound on edge, alongside EU-UK wrangling over post-Brexit trade. But the Sunak, who has adopted a more hawkish fiscal stance than many of his peers, is making investors and policymakers uneasy as higher inflation coupled with labour market shortages and supply chain disruptions are expected to hurt the economy. "As the BoE risk event draws closer, EUR/GBP may continue to stay broadly pressured, and looks set to heavily test the 0.8400 support level in the coming days," ING analysts said.