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    Spain’s Services PMI rises to 57.1, surpassing the previous 55.6

    by VT Markets
    /
    Jan 6, 2026
    Spain’s HCOB Services PMI rose to 57.1 in December, up from 55.6. This increase signals growth in the services sector, an important part of Spain’s economy, indicating a rise in new orders and overall activity. Meanwhile, the EUR/USD and GBP/USD currency pairs are experiencing fluctuations due to changes in economic indicators and market sentiment. Traders are particularly focused on the upcoming German inflation data, as it may impact the Eurozone’s monetary policy.

    Importance of Economic Indicators

    In the competitive currency markets, staying updated on key economic data like PMIs, inflation rates, and central bank policies is crucial. These indicators help traders make informed decisions. The strong Spanish services PMI of 57.1 in December 2025 shows solid economic momentum as we enter the new year. Recent reports also indicate Spain’s Q4 2025 unemployment rate has dropped to a post-pandemic low of 11.2%, suggesting strong domestic demand. This resilience in a major Eurozone economy offers a positive outlook. Looking back at last month, we awaited the German inflation data, which ended up being higher than expected. The Eurozone’s inflation flash estimate for December, released last week, showed a stubborn 2.7%, well above the European Central Bank’s target. This lasting inflation pushes back market expectations for any immediate interest rate cuts.

    Potential Strategies in Uncertain Markets

    The tension between strong growth indicators and persistent inflation places the ECB in a tough spot, likely leading to increased market volatility. In this context, buying options to take advantage of potential price swings could be a smart move. We should consider options on the Euro Stoxx 50 index, which may benefit from the uncertainty surrounding the central bank’s next steps. The ongoing pressure on the ECB suggests that a stronger Euro is likely in the coming weeks. Buying EUR/USD call options could be a strategy to exploit potential gains while capping our maximum risk. Historically, when the ECB maintained firm interest rates in 2023 and 2024, the Euro often received strong support. Create your live VT Markets account and start trading now.

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