The Pound has held together despite news of a noted slide in UK inflation figures. Apparently the tradediscounts the setback in inflation as a one-off result of declining food prices but it is also possible that economistssee the abatement of food price inflation as just another positive for the UK economy. While we think the Pound isovervalued, rising open interest on the recent rally suggests that buyers are not be discouraged from chasing thePound upward on its charts. However, we have suggested that traders attempt to finance a longer term Pound putplay with near to expiration short put play. (see recommendation below)
