Ella 
In Asia on Tuesday, GBP/USD fell to around 1.2690. The market maintained a risk-off sentiment as concerns about geopolitical risks dominated the mood of market participants, with GBP/USD falling. Additionally, traders are awaiting UK labor market data due on Tuesday.
The change in the number of UK applicants in November was 16K, while the UK unemployment rate in November – based on ILO standards (three months) – is expected to remain stable at 4.2%. Employment change in October was recorded at 50,000. In addition, Bank of England (BoE) Governor Andrew Bailey’s testimony on Tuesday, which was scheduled to be held before the Economic Affairs Committee of the House of Lords in London, was canceled. Traders hope to see whether the Bank of England chief will speak at the World Economic Forum in Davos, Switzerland.
On Monday, an official from Yemen’s Houthi rebels announced their intention to expand targeting in the Red Sea region to include U.S. ships. The statement came in response to ongoing attacks on the Houthis, as the Iran-allied group vowed to fight back despite recent US and British attacks on its strongholds in Yemen. A U.S.-owned and operated container ship has been sunk in an anti-ship ballistic missile attack in Houthi-controlled territory in Yemen. This event reversed previous market optimism into risk aversion, thus providing support for the US dollar.
