QROPS update 17th May 2011 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).

IN THE UK

• Sterling remained largely out of the headlines yesterday but fell against the euro ahead of the inflation figures published later today.
• The pound fell roughly 0.7% to finish the London session just over €1.14
• Against the dollar, it rose slightly to $1.6230, helped by gains seen in EUR/USD 

ELSEWHERE

• The dollar has a mixed day, strengthening again the yen but falling against the euro as the bailout of Portugal is agreed at €78bn
• EURUSD traded between a range of $1.4117 and $1.4245.
• Eurozone inflation rose to 2.8% from 2.7%, marking the 5^th month that inflation has been above the ECB’s target, ensuring that the recent debate of interest rate rises will continue.
• IMF Strauss-Khan is denied bail, but I doubt this will have much of an effect on the markets
• US hits its debt limit of $14.294 trillion, suspending payments into civil service pension funds to free up $150bn
• Australian central bank minutes reveal hawkish stance moving forward, if economic conditions continue as expected rates hikes are certainly on the cards.  

DATA TO LOOK OUT FOR

• UK CPI data is released this morning this morning, as in previous months, inflation is expected to rise to over 4% and will further highlight the difficulties facing the Bank of England to control rising prices. If inflation is much higher than the expected 4.1%, be prepared for some pound gains because of the increased argument for a rise in interest rates, however these gains are quite often short lived and might be completely counteracted by the release of the BoE minutes tomorrow morning.
• European ZEW Economic Sentiment is released at 10.00am, with the troubles facing Europe, outlook is expected to fall slightly.
• US Building Permits is released at 1.30pm and as the housing market continues to struggle the number of new construction projects is expected to fall. The housing market in the US is a key economic factor and can cause dollar volatility.
• US Housing Starts is also released at 1.30pm and carries similar significance, this figure is expected to rise so the two may cancel each other out overall.
• US Industrial Production figures are released at 2.15pm, usually this figure carries little significance but over recent months where the US recovery shows signs of slowing down, figures involving industry and manufacturing can move the markets more.
• NZ PPI Input and Output figures released at 11.45pm will highlight if the stronger NZD is having a effect on inflation 

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.

This with the reassurance and security of UK FSA authorised and regulated advice - essential for your security.