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Drought in Europe 2022: Experts expect drought to extend for another three months

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drought in Europe map

Drought in Europe 2022: a lot of EU regions will experience another three months of unprecedented drought, the Associated Press reported Wednesday, citing a European Union report.

“Drought and high temperatures are expected in the western Mediterranean until November 2022,” the report said.

Drought in Europe map

It is noted that Portugal and Spain will be particularly affected. At the moment there is a drought warning for almost half of the EU countries. Also, a deterioration of the situation is observed in Belgium, France, Germany, Hungary, Ireland, Luxembourg, and others.

Earlier it was reported that, according to the Joint Research Center of the European Commission, the current drought seems to be probably the most severe in the last 500 years. Final data at the end of the season may confirm this preliminary estimate.

Countries in Europe, which this summer are suffering from wildfires associated with abnormal heat and drought, in 2022broke the sad record: the fire devastated 662.8 thousand hectares.

Among the states most affected by fires this year are Spain (246 thousand ha of burned forests), Romania (150 thousand ha), Portugal (75 thousand ha), and France (61 thousand ha).

Earlier we reported that the U.S. dollar exchange rate is stable against the euro, rising against the yen.

Forex

History low for the pound British

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history low for the pound british

Today we can observe history low for the British pound. The British pound has fallen in the international forex market by almost 5% against the dollar – to a record low of $1.0384. The pound fell 0.85% against the U.S. dollar to $1.0762.

The British currency depreciated after the Ministry of Finance of the country promised to continue cutting taxes, raising fears that the new policy will lead to a sharp rise in inflation and the national debt, Bloomberg wrote. The pound’s collapse was the biggest intraday drop since March 2020, when markets were panicked by the start of the COVID-19 pandemic, the publication estimated.

The sell-off in the currency began on Friday, after the government announced a plan for a massive tax cut in the U.K., which will affect individuals and businesses and increase the budget deficit.

“History low for the British pound shows that markets do not trust the UK,” said Saxo Capital Markets strategist Jessica Amir. – The pound is one step away from parity with the dollar, and things will only get worse from here.”

The British currency has already fallen 20% against the dollar this year. According to Bloomberg, the fall in the British pound sterling in 2022 surpassed the collapse seen after the vote to leave the European Union (Brexit) in 2016. At that time, the U.K. currency depreciated by about 16% in one year.

Earlier we reported that the dollar is getting cheaper against most currencies after rising the day before.

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The dollar is getting cheaper against most currencies after rising the day before. Global money is getting cheaper

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money getting cheaper

The dollar is getting cheaper against the euro, the yen and the pound sterling today after a solid rise in the previous session on the background of the fact that all the world’s money’s getting cheaper. 

The dollar is correcting because investors are trying to fix profits after its significant strengthening, said Trading Economics. Experts believe that the U.S. currency will continue to strengthen on the background of a rapid tightening of monetary policy by the Federal Reserve (FRS). Also, the dollar is supported by reducing the appetite for risk in world markets.

Further growth in volatility in the financial markets will strengthen the dollar because of its status as a “safe haven” currency, said an analyst on the currency market, CBA Carol Kong.

The euro rose 0.53% to $0.9660 against the dollar, up from $0.9609 at the close of the previous session. The day before, European currencies were cheaper against the dollar by 0.8%.

The pound rose by 1.07% to $1.0803 during the trading session, compared to $1.0689 the day before. The exchange rate of the dollar against yen decreased by 0.30% – down to 144.31 yen against 144.75 yen by the end of the previous session. On Monday the American currency grew by 1.5% against the pound and by 1% against the yen.

The index, calculated by ICE, which shows the dollar trend against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and the Swedish krone), was losing 0.5% during trading. The day before, the indicator had updated its 20-year high.

Earlier we reported that the Nasdaq is on the plus side amid signs that growth stocks are recovering.

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Nasdaq index rises again amid signs growth stocks are recovering

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current Nasdaq index

The Nasdaq index rises again early in Monday’s session as growth stocks try to recover from a sharp sell-off sparked by fears that Fed action will lead to a recession.

The S&P 500 also showed signs of stabilizing after briefly falling below its mid-June closing low of 3.666 on Friday, nearly wiping out the sharp rebound it had achieved over the summer.

The Fed’s announcement that high interest rates could hold out until late 2023 sent the three major U.S. stock indexes down 4-5% last week, with the Dow Jones index near bear market territory on Friday.

Growth was led by sectors that included securities of mega-capitalization companies, including technology S5INFT, communications services S5TELS, and consumer discretionary S5COND.

Shares of Apple Inc, Microsoft Corp, amazon.com Inc, and Tesla Inc, rose 0.9 percent to 2.0 percent, supporting the current Nasdaq index.

“We’re just seeing gains driven by a sense of relief after a very tough period for the Nasdaq and growth stocks,” said Jeffrey Schulze of ClearBridge Investments.

“Obviously, the last month has been very tough for growth stocks as investors re-evaluate higher Fed rates and, ultimately, the ultimate rate of this cycle of monetary policy tightening.”

Earlier we reported that Wall Street closed in the negative; the Dow confirmed a bear market.

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