The financial markets exhibited thin volatility in the wake of thin trading volume as most traders are getting ready for annual holidays. However, the volatility is expected to be back today as the economic calendar is loaded with some high impact events. Most of the focus will remain on the labor market report from the United Kingdom and a few other low impact data from the United States.

The British pound dropped on Tuesday following news that UK Prime Minister Boris Johnson was attempting a hard line on Britain’s transition phase following Brexit, while the Aussie dollar sank on a downbeat mood from the nation’s central bank.

Watchlist – Key Economic Events Today

GBP – Average Earnings Index 3m/y – 9:30 GMT

It’s a leading indicator of consumer inflation and shows a change in price for businesses and the government pay for labor, including bonuses. Simply, when businesses pay more for labor, the higher costs are usually passed on to the consumer, which leads to inflation.

The UK’s Office for National Statistics reported 3.6% average earnings in November 2019, whereas economists are expecting it to come out at 3.4%, showing a dip. With this, the GBP pairs can stay under pressure as sooner or later, the BOE may have to cut the rates to support the economy.

GBP – Unemployment Report – 9:30 GMT

It’s one of the most eyed economic data as it shows a change in the number of people claiming unemployment-related benefits during the previous month. The upcoming jobs report is expected to be neutral. Jobless claims are expected to drop from 33.0K to 21.2K in the month of December 2019.

While the unemployment rate is also expected to jump higher. Traders, the bigger number show slacks in the labor market, and it will pressure BOE to keep the interest rates lower in the upcoming policy meetings.

GBP – BOE Gov Carney Speaks – 19:15 GMT

The Bank of England Governor Mark Carney is due to deliver brief remarks at the ECB Farewell Board Dinner for Benoît Cœuré, in Frankfurt. Being the head of the central bank, his comments will remain in focus to predict any movement in the market.

USD – Building Permits – 13:30 GMT
The Census Bureau is due to release an annualized number of new residential building permits issued during the previous month. The figure represents an investment in capital assets, and a higher number represents that investors are confident about their economy.

This month, the building permits seem to have dropped from 1.46M to 1.41M, and this may put the dollar under bearish pressure.

Good luck!