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    Argentina’s unemployment rate fell to 6.6% in the third quarter, down from 7.6%

    by VT Markets
    /
    Dec 19, 2025
    Argentina’s unemployment rate has dropped to 6.6% in the third quarter, down from 7.6% previously. This is a good sign for the labor market, but challenges remain. The economic landscape is constantly shifting, influenced by various factors affecting currencies and commodities. Market reactions may vary as analysts evaluate this data alongside global economic trends.

    Unemployment Rate Drop

    The decline in Argentina’s unemployment rate to 6.6% is encouraging. It suggests that the economic reforms started in late 2023 might be stabilizing the labor market. This marks the second consecutive quarterly drop, indicating a slow yet genuine recovery after the severe recession in 2024. Traders should see this not as a sign of rapid growth but as reduced risk for Argentine investments. For those trading the Argentine Peso, this news could support a strategy of selling USD/ARS volatility. Following the significant devaluation in 2024, when the unofficial exchange rate exceeded 2,000 pesos to the dollar, the currency has been somewhat stable around 1,500 pesos in the latter part of 2025. Given this positive news, it may be wise to consider selling out-of-the-money call options on the USD/ARS pair, as the likelihood of a major currency collapse seems lower in the short term. In equity derivatives, focus on the Merval index, which has increased by nearly 50% in 2025 as foreign investment cautiously returns. This employment report benefits consumer and banking stocks, which make up a large part of the index. Buying call options on Merval-linked ETFs for the first quarter of 2026 could be an easy way to position for continued positive sentiment.

    Risk Management Strategies

    Nevertheless, we must be careful since central bank reserves are still very low, and inflation, while down from its peak, was reported at 8.5% month-over-month in November 2025. Therefore, any long positions should be protected. Pairing long equity calls with a small purchase of far out-of-the-money USD/ARS calls could help safeguard against any sudden political or economic changes. Create your live VT Markets account and start trading now.

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