The pound has built on yesterday's gains following positive inflation data released this morning

Yesterday the pound recovered losses incurred at the end of last week, as the kiwi was stung by a market movement away from higher risk currencies.

• The pound reversed its downward slide, gaining nearly a cent (0.4%) as demand for the kiwi was significantly dulled by the easing of risk appetite.
  
• A trade dispute between the US and China, although not severe, was enough for investors to question whether they had oversold haven currencies, weakening the kiwi.
  
• The New Zealand dollar also continued to be held back by an unexpected fall in retail sales which weakened claims of an early rate rise.
  
• In trading this morning the pound has slowed its gains, currently trading marginally above yesterday’s closing price.
  
• With little significant data out in New Zealand to move the currency, investors will be focusing closely on figures released in the US today, as well as a speech by Fed chairmen Bernanke, for clues to current economic health and possible risk strategy.