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    In November, Spain’s actual unemployment change was lower than predicted, with a decrease of 18,805.

    by VT Markets
    /
    Dec 2, 2025
    Spain’s unemployment rate for November decreased by 18,805, which is better than the expected drop of 12,400. This reflects a positive trend in the job market. The smaller-than-expected decline in unemployment hints that Spain’s economy may be bouncing back faster than thought. This could boost overall confidence in the economy and affect the European Central Bank’s decisions on monetary policy.

    Strengthening Job Market in Spain

    Overall, the data shows that Spain’s job market is getting stronger, which could encourage consumer spending and drive economic growth. Spain’s unemployment dropped by 18,805 in November, exceeding the predicted decrease of 12,400. This better-than-expected result indicates that the domestic economy is gaining more strength than we had anticipated. Notably, this report comes after Eurostat revealed that the Eurozone’s GDP growth for Q3 was only 0.1%. For the IBEX 35, we might want to consider buying call options on the index and on major Spanish banks and consumer stocks likely to benefit from a stronger job market. As implied volatility may rise in the coming days, acting on this news could be beneficial. Looking back at the recovery from 2021 to 2022, we saw similar strength in the job market lead to a sustained rally in these sectors.

    Impact on Euro and Bond Market

    This strong labor data from Spain could boost the Euro, as it might lead the European Central Bank to hold off on any rate cuts. We should consider short-term EUR/USD call options, especially since the current figures show that the gap between Spanish and German 10-year bond yields has tightened to 75 basis points—the narrowest it’s been this year. This data from Spain contrasts with the weaker manufacturing reports from Germany last month. In the bond market, this development could lead to higher yields on Spanish government bonds as expectations for economic growth rise. Traders might think about taking short positions on Spanish 10-year bond futures (BONO futures), anticipating that bond prices will drop as the market adjusts to a stronger economy. Create your live VT Markets account and start trading now.

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