Unclear Which Way the Pound Will Move

The combination of lower equities with the FTSE down 1.6%, and a housing survey that reported offering prices were 2.2% lower set the stage for a lower pound. A positive Empire Manufacturing report may have helped the USD. Our concern Friday was that the equity weakness would continue on Monday further weakening the pound was well founded. The CME futures reports that the open interest in the pound did go up 1505 contracts on Friday.

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