QROPS update 13th December 2010 Pension Foreign exchange QROPS and QNUPS

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).

The US Dollar closed Friday’s trading session virtually unchanged. The economic day was mixed with fundamental data on balance fairly positive, but news from Europe dampened the mood. Firstly looking towards Europe there is growing discontent with the region to the debt crisis and the potential for a Euro bond ahead of the EU summit this week. US import prices, the trade deficit and the consumer sentiment all beat expectations. In addition Moody’s confidence that the nation won’t be at risk for a downgrade for at least 18 months looks a little more optimistic. The economic calendar is quiet today ahead of tomorrow’s FOMC meeting.

The Euro remained fairly stable on Friday despite the growing discontent within the region. ECB’s council member Ewald Nowotny suggested an unwinding of liquidity measures was necessary and French President Sarkozy echoed Merkel’s tone that no bailout expansion or Eurozone bond would be passed. Adding to the uncertainty the IMF held off on passing its €22.5 billion loan to Ireland until after the nation’s parliament put the support to a vote. The docket is quiet today; however, ECB president Trichet is set to speak after the European market close.

The British Pound moved to a fresh week high against the US Dollar and has been advancing slightly under the radar of late. A report by the U.K. Office for National Statistics showed producer prices grew at an annualised pace of 3.9% in November amid forecasts for a 4.0% expansion, while the core rate advanced to 3.2%. Overnight UK House Prices dropped for the second month, sliding 3% in December according to a report from Rightmove. Today the economic calendar is fairly light.

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.

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