QROPS update 14th September 2012 Pension drawdown and QROPS & QNUPS

• UK
• Despite a quiet day of economic data releases from the UK, the market has gone to full “risk on” mode as the Fed unleashes QE3. GBPUSD traded at a high of 1.6124 and a low of 1.6085 in yesterday’s trading session and this morning has hit a 4 month high of 1.6205.
• Donald Kohn, former vice-chairman of the Federal Reserve, said in an interview with the Financial Times that it is important UK banks "be active lenders and support the UK economy."He was quoted as saying yesterday that UK banks should cut back lending overseas to free up capital to fund loans in their home market.
• GBPEUR was in a tight trading range yesterday, posting a low of 1.2457 and a high of 1.2490. This morning, however, GBPEUR is now trading at 2-month lows of 1.2424 but hit a low of 1.2409. All eyes will be on the meeting in Cyprus today as there is increasing pressure on Spain to ask for additional help.
• GBPJPY hit a week high of 125.76 as the Japanese government lowered its assessment for future growth due to deceleration in the world economy, saying that the recovery seems to have paused.

WORLDWIDE

• The dollar tumbled against major currencies as the Federal Reserve has embarked on what could prove its biggest round of quantitative easing so far in a bid to strengthen the US recovery, offering to buy $40 billion of agency mortgage-backed securities each month, starting today.
• Italy's borrowing costs for three years fell to their lowest level in nearly two years at a debt auction on Thursday, just a day after Germany's top court approved the ratification of the euro area's permanent rescue fund.
• First-time claims for U.S. unemployment benefits rose by more than expected in the week ended September 8th, according to a report released by the Labour Department on Thursday, although the data was skewed by the impact of Hurricane Isaac. Upon release of the data, GBPUSD traded at 1.6108 and EURUSD at 1.2915
• The Labour Department said its producer price index surged up by 1.7 per cent in August following a 0.3 per cent increase in July. Economists had expected the index to increase by 1.4 per cent.
• EUR/USD has also breached the 1.3000 mark, trading at a high of 1.3052 its highest level since May during the Asian session and this morning trades at 1.3039
• The US dollar dropped sharply against major currencies following the release of Federal Reserve's rate decision at 1730pm yesterday, keeping its key interest rate unchanged at 0.0-0.25 per cent and is expected to keeplow at least through to 2014.
• The Swiss franc that fell against the pound in late Asian deals reversed its direction and advanced ahead of European deals on Friday. The franc edged up 1.5092 against the pound from an early low of 1.5141.

INTERBANK RATES (09.00 GMT)