3rdt September 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.
According to the latest figures reported by the Nationwide, house prices in the UK have fallen for the second consecutive month in August.
The Nationwide house price index published yesterday showed that the housing market has experienced a slight dip of 0.9% in August, which followed a 0.5% decline in July. The average price of a home in the UK is now £166,507. This is the first time since February that house prices have fallen in two consecutive months.
The annual rate of house price inflation also fell steeply to 3.9% in August from 6.6% in July.
As a result sterling fell against both the euro and the dollar after the weaker-than expected housing and construction data contributed to the ongoing fears that a frail UK economic recovery could be losing momentum.
Growth in Britain's construction sector slowed markedly in August, after yesterdays
PMI survey came in at 52.1% against a consensus of 53.9% which was led by a loss of momentum in residential construction.
In Europe yesterday and as expected following on from the European Central Banks monthly monetary policy meeting the decision was made to keep the key interest rate unchanged at 1.0%. ECB president Jean Claude Trichet has extended emergency lending measures to banks into 2011, whilst they remain in crisis mode at the risk of another recession in the U.S which could jeopardize the euro-area’s resilience.
In a report released by the U.S department of Labour yesterday, the number of initial unemployment claims fell to 472,000 in the week ending 28th August 6000 down from the previous week’s revised figure of 478,000. Continuing claims dropped by 23,000 to 4.456million. U.S Nonfarm unit productivity was revised down to a 1.8% decline at an annual rate in the second quarter, while unit labour costs were revised up to a 1.1% rise, the Bureau of Labour Statistics reported yesterday.
Also in the U.S The National Association of Realtors reported that its Pending Home Sales Index, based on new contracts signed in July, increased by 5.2% percent to 79.4 from June. Compared to July last year, pending home sales fell 19.1%.
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.