QROPS update 14th February 2012 & 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 income drawdown, flexible pensions or QROPS (Qualifying Recognised Overseas Pension Scheme) should be considered to maximise the Pension drawdown, 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, income drawdown now including flexible pensions, a QROPS and QNUPS (Qualifying non UK Pension schemes).

IN THE UK

• Moody’s hit the headlines this morning as the US credit ratings agency changes the UK outlook to negative and warns they may be stripped of their top AAA rating because of risks to GDP growth from the effects of the Eurozone debt problems.
• The pound started Monday morning at the session high of $1.5826 against the US dollar before steadily falling below the $1.58 at the European close, overnight the pair has seen further losses touching $1.5684.
• GBPEUR traded within a tight range, starting the day at €1.1923 and ending at €1.1952
• Data released this morning showed UK inflation is falling in line with expectations; the Consumer Price Index fell to 3.6% from 4.2% whilst Retail Price Index fell to 3.9% from 4.8% last month, this has had a fairly muted effect on pound value.

ELSEWHERE

• The German government welcomed the Greek approval of additional austerity measures but again demanded that the Greek political leaders affirm their support for the cuts.
• Eurozone finance ministers meet tomorrow at an emergency meeting to hear details of how Greek will find an extra €325m worth budget cuts to bring the total to €3.3bn in the next year.  
• EUR/USD hit a high of $1.3283 during the London session as terms of the Greek bailout looked to be agreed, but moved back towards $1.32, after both S&P and Fitch moved to downgrade Spanish banks yesterday afternoon.
• US President Barack Obama released his fiscal year 2013 budget, securing about $3 trillion in deficit reduction over ten years.
• The Obama budget project is looking for $1.5 trillion in additional revenues with much of this coming from tax’s on workers incomes of more than $250,000
• Overnight the Bank of Japan kept interest rates unchanged at 0.1% as expected but surprisingly increased its asset purchase facility to 65 trillion yen and set an inflation target of 1.0%.
• The US Dollar pushed higher against most currencies in overnight trade as stocks declined, driving demand for the safe-haven currency.
• Along with the Moody’s announcement to put the UK on credit watch, both Italy and Spain’s credit ratings were reduced to A3 causing EURUSD to fall to €1.3150 in Asian trading early this morning.

DATA TO LOOK OUT FOR (all times GMT)

• Industrial Production figures are released this morning in the Eurozone.
• In the US we have Core Retail Sales as well as Retail Sales (month on month) which is the primary gauge of consumer spending. 

Gerard Associates Ltd advises UK residents, expats and people considering living abroad on the technical and currency options available for Pensions, pension income drawdown, flexible 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.