Today on Wednesday (August 24), the euro/dollar bottomed out and rebounded. It is currently trading around 0.9969. The euro was quoted at 0.9945 against the US dollar, a decrease of 0.24%. . According to preliminary analysis by experts from the European Union’s Joint Research Center, Europe is currently experiencing its worst drought in at least 500 years. According to a new report from the European Drought Observatory, some 64% of EU countries are under drought warning or alert status. European Union experts say hot, dry weather in parts of Europe is expected to continue into November.
The latest data show that the euro zone economy will shrink in the third quarter. Rising cost-of-living pressures ended a recovery in the services sector, while excess inventories of manufactured goods suggest that improvements in manufacturing are unlikely in the short term. The sectors involved in the weakening economy are also becoming broader. Under the threat of the energy crisis, the outlook for the euro zone is full of uncertainty. While the better-than-expected performance of German manufacturing in August buoyed the euro at one point, pulling EURUSD back from a fresh low of 0.9902 hit on Tuesday, the rally was short-lived and stalled near 0.9930.