The British Pound slumped yesterday after reports surfaced that PM Johnson seeks to pass a bill which will make an extension of the transition period illegal. UK employment data came in better-than-expected yesterday, but the GBPJPY corrected into its next horizontal support area. How will today’s inflation data impact price action? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.

Japanese exports and imports posted a steep contraction in November, reminding markets that the global economic slowdown remains in place. The phase-one trade deal between the US and China lacks substance while Brexit worries are surfacing once again. This allowed bears to reverse the GBP/JPY from its current highs, but what impact will this morning’s inflation data out of the UK have? Today’s fundamental analysis will take a look at price action in both directions.