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).

UK

Sterling posted a heavy loss against the US Dollar, touching a low of 1.5696 after falling nearly 2 cents from the day’s open at 1.5873.

GBPEUR experienced another quiet day on Tuesday, marginally extending Monday’s trading range staying within 0.25% of 1.20 all day.

The UK was not subject of any significant data release’s yesterday or today. Thursday’s statement from the MPC meeting is the focus now, after a clear divide emerged last month regarding the UK Quantitative Easing policy.

The UK government lacks a "compelling vision" for the future of the economy beyond stabilizing its own finances, Business Secretary Vince Cable has told the prime minister and deputy prime minister, according to a letter obtained by the BBC.

WORLDWIDE

European stocks registered their largest losses of 2012 as investors continued to fret about the global growth outlook, while there was also escalating nervousness ahead of the Greek debt swap and how willingly private creditors would participate in the deal by the March 8 deadline.

EURUSD was unable to weather the ominous warning that, according to the Institute of International Finance, a Greek default could cost the region upwards of €1 trillion. The troika are preparing for involuntary restructuring and saw the Euro strike a 20-day low of 1.3103.

Quarterly European GDP was released in line with expectation of +0.3% but Annual figures for the same data surprised the market at +0.7%, a direct reversal of the anticipated -0.7%.

Federal Reserve Chairman Bernanke hinted that the US may breach their 2% inflation target in the short term to lower unemployment.

Canadian PMI from the Ivey index yesterday suggested that business conditions are improving, posting 66.0 after January’s post of 55.7, yesterday’s release even surpassed the 62.3 tipped by analysts.

Australia's central bank said Wednesday that it is alert to the possibility of an overshoot by the strong Australian dollar. Deputy Governor Of the Reserve Bank of Australia Phil Lowe said it is possible for currencies to "overshoot" and the current environment for the Australian dollar makes it a possible candidate.

Australia's average measure of Gross Domestic Product rose 0.4% in the fourth quarter of 2011 from the third quarter and rose 2.3% from the year earlier. The data was lower than expected. Economists had forecast GDP to rise 0.8% on a quarterly basis and 2.4% from the previous year.

Swiss unemployment held steady at a 10-month high in February at 3.4%, as sluggish growth in its key export markets dissuaded companies from hiring staff.

DATA RELEASES (GMT)