16th August 2010 Pension Foreign Exchange Report QROPS & QNUPS

We continue our daily look at factors affecting currencies allowing some insight into market conditions affecting exchange rates. Cash and income timing for UK Pensions and QROPS should be considered to maximise the Pension, QROPS and investment income and benefits taken.  

Investment market volatility and currency exchange remains a challenge. Things are still very volatile and we are in unique global influencing territory.  In conjunction with investment returns, currency exchange continues to concern many expats with UK Pensions, QROPS and now QNUPS.

Friday saw sterling rise to a 6 week high against a weakening euro as the shared currency stayed under pressure as concerns heightened over economies on the eurozone periphery, while the pound hovered above technical support versus the dollar.

With minimal UK data, the focus was on German GDP figures which grew 2.2%, way above expectations of 1.3%, this initially boosted the euro, but euro gains were quickly offset when lacklustre results in an Italian bond auction triggered a further widening in sovereign euro zone spreads.

By around 14.30pm GBP/EUR was trading as high as €1.2229 up from the day low of €1.2104.

The pound pared earlier gains versus the dollar to trade at $1.5585, having risen as far as $1.5680 in morning trade as European stocks initially traded with decent gains before coming back to trade around flat on the day.

It had fallen to a near two-week low on Thursday at $1.5562 as weak Greek GDP and unemployment data reignited concerns over peripheral euro zone countries and sent investors seeking the safe-haven status of the Greenback.

Sterling rallies were hampered after the Bank of England cut its growth forecasts on

Wednesday and predicted inflation would stay below target over the medium term leaving the door open for more quantitative easing.

That was the trigger for sterling's biggest daily percentage loss since mid-May, taking it well away from six-month highs reached on Friday just shy of $1.60.

Technical analysts highlighted a cluster of support levels that should help to underpin the pound against the dollar.

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 Pensions, investments, currency exchange and guidance on taxation in most popular ‘sunnier’ climates.   This with the re-assurance and security of UK authorised and regulated advice – essential tools for your security.