Sign Up Log in

    Factory orders in Germany improve to -0.7% year-on-year, up from -4.3%

    by VT Markets
    /
    Dec 5, 2025
    Germany’s factory orders improved in October, showing a year-on-year decrease of 0.7%, much better than the previous decline of 4.3%. This suggests a potential recovery in factory orders, even though overall, they are still down. In Canada, we expect the Labour Force Survey to reveal a weaker job market for November. The unemployment rate is likely to rise to 7%, while the employment change is expected to stay the same after gains in October. The rise in German factory orders indicates that the industrial downturn in Europe’s largest economy might be stabilizing. This aligns with the November IFO Business Climate index, which increased to 87.8, marking its third straight monthly rise. Negative sentiment may be too strong, creating an opportunity to consider call options on the DAX for the first quarter of 2026. Meanwhile, in North America, we are preparing for today’s Canadian Labour Force Survey. The consensus expects a weak report, indicating that unemployment may rise to 7%. This bearish outlook is likely already reflected in the Canadian dollar, suggesting it could be at risk of surprises. A stronger-than-expected jobs number could lead to a sudden rally in the CAD. Inflation complicates matters, as Canada’s headline CPI for October remained steady at 3.1%. This persistent inflation makes it tough for the Bank of Canada to signal future rate cuts, even with the anticipated weakening labor market. The tension around policy decisions suggests more volatility, making strategy options like a long straddle on the USD/CAD exchange rate suitable for navigating uncertainty around the announcement. From the post-pandemic recovery in the early 2020s, we know that central banks handle slowing growth and stubborn inflation with caution. A single weak jobs report, even if it aligns with expectations, might not be enough for the Bank of Canada to change course. This indicates that uncertainty could continue into the new year, supporting strategies that benefit from price movements rather than betting on a specific direction.

    here to set up a live account on VT Markets now

    In This Article

    see more

    Back To Top
    server
    Click Click Click Click Click
    Follow us on

    Hello there 👋

    How can I help you?

    Chat with our team instantly

    Live Chat

    Start a live conversation through...

    • Telegram
      hold On hold
    • Coming Soon...

    Hello there 👋

    How can I help you?

    telegram

    Scan the QR code with your smartphone to start a chat with us, or click here.

    Don’t have the Telegram App or Desktop installed? Use Web Telegram instead.

    QR code