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Exchange Rates Today: Pound to Euro Forecast to Rise, Euro Dollar Strikes Two Year Low

November 6, 2014 - Written by John Cameron

The euro (currency:EUR) came under renewed selling pressure on Thursday afternoon following comments from ECB President Mario Draghi which revealed a deepened commitment to loosening monetary policy in the eurozone.



Pound and Euro Rate Today:

The Pound to Euro exchange rate converts -0.02 per cent lower at 1 GBP is 1.27914 EUR.
The US Dollar to Euro exchange rate is +0.76 pct higher with a conversion rate of 1 USD equals 0.80751 EUR.
The Euro to Aus Dollar exchange rate is -0.62 pct lower at 1.44548.
The Euro to Pound Sterling conversion rate is +0.02 pct higher at 0.78177 EUR/GBP.
The Euro to US Dollar rate today is -0.75 pct lower at 1.23837 EUR/USD.

Deteriorating Forecast For Eurozone Economy



Draghi’s general outlook for the euroland’s economy also worsened, adding to the downside pressure on the single currency on the day.

The ECB Chief observed during his press conference this afternoon that he sees indications for downward revisions to the region’s existing economic forecasts and went on to assert that the risks to economic outlook remain on downside.

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These words build on the European Commission’s report earlier in the week which brought a pronounce reduction in its GDP growth forecast for the eurozone in both 2014 and 2015.

Euro to Dollar Rate Today: EUR/USD Plunges to Two Year Lows



However, it was Draghi’s suggestion that his Bank’s policymakers stand ready to introduce further policy measures to jump start lending in the euro area which caught the eye of global investors.

The development sent the euro Dollar exchange rate down to its lowest level for some two years at 1.2395 earlier on today.

Meanwhile, the Pound to euro edged towards its highest level in more than two years, touching 1.2819 GBP EUR earlier on.

UK GDP Growth Steady



Elsewhere, this afternoon’s NIESR Gross Domestic Product Estimate for October predicted that the quarterly rolling level of growth in the British economy remained static at 0.7% last month, suggesting that the domestic economy is maintaining a steady level of expansion.

The GBP is likely to benefit over the next four months as a result.

Exchange Rate Forecasts: Market Awaits US Jobs Data



Looking ahead, the next 24hrs brings a significant number of key risk events, including tonight’s monetary policy statement from the Reserve Bank of Australia and a set piece speech from the Bank of England Governor Mark Carney in Paris tomorrow afternoon.

However, the main event before the weekend market shutdown comes tomorrow afternoon in the form of the latest US Non-Farm Payrolls figures.

Another strong showing is anticipated, with the number expected to reveal that almost a quarter of a million new jobs were generated in the world’s premier economy last month.

Analysts forecast that such a showing would be likely to send the Pound to Dollar exchange rate down towards the mid-1.5000s.
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