Wyoming

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.

Sterling fell against the US dollar on Friday hitting a new day’s low after a pledge by

Federal Reserve Chairman Ben Bernanke to provide more monetary stimulus if necessary boosted the dollar.

Also better than expected UK growth figures were largely ignored on Friday as investors unwound risky positions with the long weekend in the UK looming.

Bernanke said the U.S. economic recovery was stuttering more than expected and that the central bank was prepared to provide additional stimulus, including buying more longer-term securities, if needed at the central bank's annual retreat in Jackson Hole, Wyoming.

Immediately following Bernanke’s comments sterling fell against the US dollar to $1.5442 but recovered slightly in late afternoon trade to $1.5515 still down on the day.

The UK GDP data on Friday showed the economy grew 1.25 on the quarter and 1.7% on the year, stronger than expectations for 1.1% and 1.6% respectively.

Yesterday trading was very thin due to the UK holiday, nevertheless cable traded towards the top end of last weeks range. Despite the holiday there was data on the domestic front.

The latest housing data from Hometrack recorded the second consecutive monthly decline in prices, with the Year on year rate falling down 1.5%.

In addition the British Chambers of Commerce, in their latest forecasts, see interest rates on hold until the second quarter of next year, despite their upward revision to growth in the current quarter.

Key data this week to look out for will be the US fed minutes later on this afternoon, German PMI tomorrow morning followed swiftly by Eurozone PMI.

Thursday sees Swiss GDP followed later in the morning by Eurozone GDP and an ECB rate decision.

Friday sees the well documented US non-farm payroll figures.

Gerard Associates Ltd advises expats and people considering living abroad on the technical and currency options available for QROPS 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.