LONDON, Nov 25 (Reuters) - The cost of hedging against big near-term moves in the pound against the euro shot to its highest since April on Tuesday, reflecting trader nervousness ahead of finance minister Rachel Reeves' budget in a day's time.

Overnight implied options volatility, a measure of demand to own derivatives to protect against turbulent price action, shot to as much as 12.2% for euro/sterling . That was the most since April, when U.S. President Donald Trump's initial "Liberation Day" tariff announcement stirred up extreme market turbulence and the measure hit 15%.

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It was last at 10.82%, according to LSEG data.

https://www.reuters.com/world/uk/sterling-options-volatility-nears-liberation-day-highs-ahead-uk-budget-2025-11-25/