At Gerard Associates Ltd we continue our daily look at factors affecting markets and currencies allowing some insight into conditions affecting exchange rates.
Cash and income timing from a UK Pension or QROPS (Qualifying Recognised Overseas Pension Scheme) should be considered to maximise the Pension, QROPS and investment income taken.
Investment market volatility and currency exchange remains a challenge. The global economics are volatile and unprecedented in history. Currency exchange continues to concern expats with UK Pensions, QROPS and now QNUPS (Qualifying non UK Pension schemes).
Sterling continued to produce positive data yesterday as UK PMI data (Sales and Employment) showed a reading of 54.1, a figure which was above the 53.6 estimation. Anything over 50 shows a growth, while a figure below 50 shows contraction.
The figure was unexpected which boosted Sterling initially to $ 1.5914 but dropped back shortly after close to $ 1.58. However no initial gains were made for Sterling against the Euro, as the UK outlook was still poor, which was highlighted by the weakest inflow of new business in over a year.
Eurozone PMI also came in positive, further boosting the Euro across the board.
The UK economic outlook still remains weak whilst we wait tomorrows Bank of England decision as to whether they will adopt further Quantitative Easing.
The pound fell later against the Euro below the euro1.15 level as low as euro1.1488, but did make gains against the dollar as investors sold USD ahead of further U.S. Quantitative Easing.
The pound briefly pushed as high as $ 1.5930 a 2 month high. Whilst the Euros strength remained buoyant as it reached a 6 month high against the dollar $ 1.3851.
Bank of England policymaker Adam Posen last week advocated a further bout of quantitative easing, although few expect any change in policy this week.
“I think the Bank of England would want to see the impact of the government spending cuts on business before deciding on more measures,” said FX and rates strategist at Monument Securities. “I would not expect them to announce anything this week.”
British finance minister George Osborne announced cuts in welfare benefits on Monday, further detailing a fiscal squeeze which analysts are concerned may threaten Britain’s fledgling economic recovery.
Gerard Associates Ltd advises expats and people considering living abroad on the technical and currency options available for Pensions, QROPS, QNUPS and investments in a clear format allowing all customers to make an informed choice. Our service encompasses Pension including QROPS and QNUPS and investments in a clear format allowing all customers to make an informed choice.
This with the reassurance and security of UK FSA authorised and regulated advice – essential for your security.
Russel Mori writes for Gerard Associates LTD, for more information on QROPS, QROPS Pensions, QROPS List, QROPS providers, QROPS guernsey info available online.