QROPS update 8th November 2011 Pension drawdown & 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

• GBP posts gains as the Eurozone struggles to cope with the debt crisis and Eurozone leaders are failing to come to grips with problems, increasing demand for GBP as a haven.
• UK house prices increase in October, bucking the trend, and painting a mixed picture of the UK economy.
• UK output index declined in October to 92.6 its lowest level since June 2009 to a level that indicates a ‘serious risk’ of recession.
• Sterling gains vs. the Euro hitting a new high of 1.1683 falling away slightly in afternoon trade and closing the day at 1.1655.
• Sterling finished the day flat against the dollar having traded in a 1 cent range between 1.5980 and 1.6079 closing the day at 1.6013.
• One of the biggest gainers yesterday was GBP/CHF closing up more than 1% at 1.4441 the pound was helped by weak Swiss CPI figures.

ELSEWHERE

• Greek Prime minister George Papandreou is still in charge of Greece but has agreed to step down to make way for a coalition government.
• Investors seemed less concerned about the antics in Greece yesterday as the woes of Italy returned to the trading floors. The 3^rd biggest economy in the Eurozone is back under scrutiny as debt levels rise.
• Senior Italian officials say Italy can withstand debt costs of 8% and still avoid default. Italian debt currently stands at 6.6%.
• Italian Prime minister Silvio Berlusconi says that rumours of him stepping down are greatly exaggerated, however Italian parliament seems to have lost confidence ahead of vote tomorrow and pressure on him increases.
• Japanese Yen intervention in markets fails to hold its nerve and loses momentum as chances of more intervention increase.
• The Canadian dollar appreciates after price of crude oil hits a new 3 month high.
• USD made some small gains against the euro yesterday off the back of the European uncertainty, closing the day at 1.3739 up 0.3%. 

DATA TO LOOK OUT FOR (all times GMT)

• Main focus today will be the EcoFin meeting today where the 27 finance ministers of EU will discuss monetary policy within the European Union, UK Chancellor George Osborne said this morning, a resolution for the Eurozone debt crisis must be reached immediately to avoid a financial disaster.
• UK Manufacturing and Industrial Production Figures are released at 9.30 this morning, with data being fairly light for the UK this week, eyes will be focused on these figures and both annual figures are expected to show a slight improvement from last month which might help sterling maintain its good start to the week.
• Canadian Housing Starts numbers are released at 1.15pm and forecast to fall to 201k from 205.9 last month, if correct it they won’t help CAD strength.
• At 3.00pm NIESR publish their estimate for GDP figures for the last 3 months, the previous figure was 0.5%. Whilst this report is released before the official figures for UK GDP, this estimate can aaffect UK monetary policy and any major surprises can have repercussions on sterling strength.
• Consumer Confidence figures in Australia and Trade Balance figures are released in Japan over night tonight 

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.

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