While the Pound is being held back by strength in the Euro and Swiss, generally positive globaleconomic views have left the Pound sitting just under the recent highs. Holding back the Pound is news that newhome loans in the UK fell back in February but that was countervailed slightly by news that overall consumercredit rose for the month. We think the Pound is destined to track in sync with global equities and for the Pound toreturn to the 1.6750 level ahead, might require new found confidence that the US economy is indeed movingforward and that the rest of the world will eventually follow.
