Egypt flag (Creative Commons)

Morsi is still insisting on a referendum on a draft constitution that is very controversial. However, he annulled his Nov. 22 decree that gave him almost unrestricted powers and immunity from judicial oversight.

A National Salvation Front spokesman told the Daily Beast the decision to back down on the decree was "relatively meaningless."

They added that Morsi should compromise on a constitution before putting it to a referendum.

Even after the partial concession, several hundred Egyptians marched. According to Fox News:

Despite scrapping the earlier decree, Morsi stuck to the Dec. 15 referendum on a constitution hurriedly adopted by his Islamist allies during an all-night session late last month.

"This has confused many, who opted to stay home," said Tarek Shalaby, a protester and member of the leftist Revolutionary Socialist group, as he marched toward the palace. "But we should continue our pressure. We can't lose our momentum."

Shalaby said he has still not decided whether he will vote no or boycott the referendum.

Egypt's opposition says it will keep up protests against the referendum but stopped short of advocating either a boycott or a "no" less than a week before voting.

The opposition was still pushing Sunday for Morsi to cancel the referendum, saying they reject the process entirely.

The opposition group says Morsi rescinding the decree was meaningless because it had already achieved its goal of ensuring a draft constitution would be adopted.

Reach Senior News Editor Hannah Madans here.