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).
Sterling had another tough day on the data front yesterday with more poor housing data piling the pressure on the already struggling pound. Data from Hometrack showed that house prices rose at their slowest annual rate in seven months in September.
This data was largely ignored by the markets however, with poor housing data now a par for the course in the UK, the markets have had about as much as they can take with poor housing already well and truly priced in to the market. This was reflected against the Euro which was mostly range bound and did not see a negative impact from the poor UK data.
On the flip side sterling gained against the US dollar pushing to a 7 week high of $1.5867 in early afternoon trade. Rumours persist in the market that the US will increase their quantitative easing in a bid to further stimulate the US economy and this does the US no favours at all.
Despite weakness in the UK, the battle of the ugliest is being well and truly being won by the greenback, the weakness in the pair appearing to give sterling strength against USD.
With seemingly little positive news on the horizon for sterling and the outlook, at least in the short term, looking pretty bleak sterling is clinging to any scraps of positivity that it can. The IMF gave its backing to the coalition government’s fiscal tightening plans yesterday, adding that they were essential to the long term recovery.
However this did little to encourage investors and analysts and they are still very sceptical on sterling.
With the October spending review due shortly this scepticism is likely to last in the short term but we may see a more optimistic outlook thereafter.
A busy week ahead for sterling may also lead to more uncertainty, with GDP figures due today at 09.30 and key manufacturing figure later in the week (Friday) seen as a key indicator of the health of the UK economy.
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.
