The string of economic reports out of the UK continues today with CPI, PPI and RPI data on track for release. Since the beginning of the week, economic data out of the UK has been mixed and today’s inflation batch is expected to show a decrease in inflationary pressures. With the election coming closer, and the lead of the Conservatives on the rise, how will the GBPNZD react to today’s economic data? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.

The Reserve Bank of New Zealand surprised markets by keeping its interest rate unchanged at 1.00%, expectations called for a 25 basis point interest rate cut. Food prices posted a 0.3% contraction in October and after the interest rate announcement, the New Zealand Dollar rallied. Can bulls push this currency further to the upside or will bears make sure this was just a temporary move? What does this mean for the GBPNZD? Today’s fundamental analysis will take a look at the upside potential as well as downside risk in this currency pair.