Qualifying Recognised Overseas Pension

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).

On Wednesday it was a very different story for the Pound, as the positive sentiment from the surprise GDP figure and Standard & Poor’s verbal support swiftly became yesterdays’ news. As whispers filtered through from the US that further quantitative easing was likely to happen sooner rather than later, Sterling fell nearly 0.5% against the Greenback. The Pound’s retreat was helped nicely along by figures released for Septembers’ US Durable Goods Orders. The prediction had been of a 2.0% rise, but was outshone by 3.3% posted at 12.30 GMT. The figure for Durable Goods orders excluding the transportation sector was a far more disappointing 0.8% but this failed to dent any pro-dollar feeling.

Further back up came in the form of US New Home Sales for September where the prediction was of 300K but actually arrived at the 307K level. The month on month version of the New Home Sales compounded the barrage of US data by powering in 2.4% above consensus at 6.6%.

Today is, “a dollar story, with the market responding to the prospect of more Fed QE,” said a currency strategist at UBS AG in London. “That should push Sterling-Dollar lower through profit-taking and an acknowledgement that Dollar QE-related weakness has probably been fully priced in.”

The Pound managed to hold its ground against the Euro as investors weighed up the timescale of the Bank of England, regarding further quantitative easing. German Consumer Price Index for October came in as predicted at 0.1% for month on month and 1.3% for the year on year. The Single Currency held steady against a fresh report out of Greece. The troubled country disclosed that its’ budget deficit in 2009 was actually 15% of GDP, a figure much higher than initially reported. GBP closed against JPY at almost the same level as it opened. This was despite negative data out of Japan in the forms of Retail Trade Month on month and Year on year.

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.

QROPS Providers

We continue our daily look at factors affecting currencies allowing some insight into market conditions affecting exchange rates. Cash and income timing for UK Pensions and QROPS should be considered to maximise the Pension, QROPS and investment income and benefits taken.

Investment market volatility and currency exchange remains a challenge. Things are still very volatile and we are in unique global influencing territory. In conjunction with investment returns, currency exchange continues to concern many expats with UK Pensions, QROPS and now QNUPS.

Sterling hit a near 7 month low of €1.1188 yesterday over the on-going concerns the Bank of England will need to pump extra money into the economy in the form of quantitative easing. Investors eagerly await the release of the UK’s third quarter GDP figures due today at 9:30am with expectations the UK economy expanded by 0.4% which is only a third of the 1.2% growth recorded in Q2. It must be noted that a weak figure will increase the chances the BoE will opt for a new bout of QE at their next meeting in November which previously has considerably weakened sterling’s value.

The pound’s next key support level is at €1.1111 (£0.9000) if it falls through this level traders feel we could see the rate drop to the early year lows of €1.0928

The pounds losses against the euro pushed sterling’s trade weighted index down to 78.3, its lowest level since late May and within close reach of the May low of 77.8.

Yet sterling managed to make gains against a broadly weaker dollar ahead of the Fed’s meeting next week. Investors saw a group 20 agreement to shun competitive currency devaluations to increase exports as a go ahead to sell off the greenback with many economists believing we will see the Fed increase their asset buying to help an already struggling economy. The next question will be whether the Bank of England follows Americas lead, which is resulting with the pound underperforming against majority of the other currencies, especially after the BoE minutes last week showed one policymaker, Adam Posen vote for an extension of QE by £50 billion.

"The market is gunning for the dollar going into the Fed meeting, but it's not all good for sterling and the easiest way to express a bearish view on sterling is against the euro," said Paul Mackel, currency strategist at HSBC.

"The GDP data is the main focus for sterling this week and if it disappoints the market will factor in a higher probability of more QE".

Sterling reached a day’s high of $1.5771 up from the earlier session low of $1.5661.

The US saw better then expected home sales in September which rose by 10%, this is the 2nd month in a row the US has seen an increase to this figure yet it overall is still down -19% against sales recorded a year ago, but it does go some way to show the sector may be stabilising.

Reports circulating yesterday showed foreign-exchange strategists stating the worst may still be yet to come for the pound which has depreciated over 5% against nine other most traded currencies since July. This is mainly due to the new coalition governments spending cuts which will hamper growth moving forward.

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 Pensions, investments, currency exchange and guidance on taxation in most popular ‘sunnier’ climates. This with the re-assurance and security of UK authorised and regulated advice – essential tools for your security.

Qualifying recognised overseas pension schemes

We continue our daily look at factors affecting currencies allowing some insight into market conditions affecting exchange rates. Cash and income timing for UK Pensions and QROPS should be considered to maximise the Pension, QROPS and investment income and benefits taken.
Investment market volatility and currency exchange remains a challenge. Things are still very volatile and we are in unique global influencing territory. In conjunction with investment returns, currency exchange continues to concern many expats with UK Pensions, QROPS and now QNUPS.
The pound posted its biggest weekly loss against the dollar since August on Friday amid speculation ahead of the weekend’s G20 meeting in South Korea may result in agreements that will support the US currency.
Sterling fell for a sixth week versus the euro, the longest stretch since November 2004, as G-20 finance ministers and central bankers embarked upon round of talks.
The pound and dollar have both dropped versus the euro this month on concern the Bank of England and Federal Reserve will both re-commence their asset buying purchase programmes.
Sterling was 0.2% weaker at $1.5672 at 5:00 pm in London, depreciating against the US currency in four of the last five days. It fell 0.2% to €1.1268 against euro and was little changed at 127.72 yen.
Bank of England minutes released this week showed policy makers were perhaps leaning toward a second round of quantitative easing to boost the economic recovery, helping drive the pound to its weakest level in more than six months versus the euro.
The Monetary Policy Committee split three ways as a majority voted to maintain the key interest rate at 0.5% and bond purchases at £200bn pounds. Policy maker Adam Posen voted to boost QE by £50bn pounds and on Thursday said the recovery in the economy appears “patchy.” Andrew Sentence was the only member who pushed for an increase in the key rate to 0.75%.
In contrast, German Chancellor Angela Merkel said on Wednesday governments must find an “exit strategy” from stimulus spending, and last week Bundesbank President Axel Weber called for an immediate end of the ECB’s bond-purchase program.
Chancellor of the Exchequer George Osborne on Wednesday detailed his plan to almost eliminate the nation’s record £156bn budget deficit. Osborne proposes to slash 500,000 public-sector jobs, impose a levy on banks and cut spending by £81bn pounds over five years. He aims to narrow a deficit the government forecasts at 10.1% of gross domestic product this year to 2.1% of GDP in the 2014-15 fiscal year. Debt interest costs would fall by more than £5bn by 2015.
The pound has depreciated 5.9% this year against a basket of its developed-country peers, making it the worst performing currency
G-20 meeting - Saturday Results
Despite rising before the meeting the US dollar fell against the euro and the yen after this weekend G-20 finance ministers and central bankers vowed to avoid weakening currencies to lift exports.
Officials called for more sustainable current-account gaps without embracing a US proposal for targets, as they ended talks in South Korea on Saturday. The Australian and New Zealand dollars climbed for a second day on speculation the pledge will calm concern over trade tensions and a November 3rd Federal Reserve policy decision may signal the start to a second round of bond purchases, boosting demand for higher-yielding assets.
G-20 officials pledged to refrain from “competitive devaluation” and to let markets set foreign-exchange values as they sought to calm fears that a trade war may break out if nations use cheaper currencies to spur growth.
This was the first time economic policy makers took a joint stance on exchange rates after previously resisting such actions for fear of alienating China. The G-20 statement still recycles language used at previous leaders’ summits in London and Toronto and falls short of the currency accords of the 1980s.
The statement should be “positive for risk appetite,” UBS said, and would likely support the Australian and Canadian dollars, the Nordic and emerging markets currencies at the expense of the U.S. dollar.
Citigroup Inc. strategists said the meeting “will serve to reinforce downward pressure” on the dollar against the major currencies as the communique fell “well short” of a 1985 Plaza Accord-style agreement to manage the dollar’s decline.
Australia’s dollar may benefit as it is “the most liquid currency with tight links to China,” they said in a report.
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 Pensions, investments, currency exchange and guidance on taxation in most popular ‘sunnier’ climates. This with the re-assurance and security of UK authorised and regulated advice – essential tools for your security.

QROPS Pensions

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).

The German flash Purchasing Managers Index released yesterday at 08:30am for October was at 56.6 well above the forecast figure of 54.7. This data caused the Euro to strengthen by nearly a cent against the pound taking GBP/EUR to €1.1256. The markets had closed from the previous day’s trading at €1.1351.

The German PMI data suggests that the private sector is passing through a turbulent stage in the recovery as manufacturing further adding some ground to the exceptional growth seen in the first half of this year. Growth in Germany continues to remain strong but the Eurozone as a whole is being dragged down by other countries such as France.

Retail Sales in the UK were also released yesterday showing sales fell again in September, the second month in succession they have declined. Sales were 0.2% lower than the previously released in August as sales in both clothes and fuel fell.

Analysts expected a comparative figure to last year of 0.9% the actual number released was 0.5%. This took GBP/EUR to a new 6 ½ month low of €1.1230.

This data comes after a number of retailers warned of weak trading conditions.

A British Chamber of Commerce spokesman said “there was no need for undue pessimism because the pace of annual retail growth was still faster than a year ago”.

Mervyn King had commented earlier this week that the “key role” for the Bank of England was to provide further stimulus when the economy was in need. The bank through QE has to date put £200bn into the British economy.

On Thursday morning GBP/USD opened at $1.5812 however in the US data showed the number of people in the US filing for first time claims showed a decline of 452,000 which was expected at 453,000 the previous months figure was 475,000.

This caused the Dollar to strengthen slightly with GBP/USD at $1.5758.

Also in the US the Philadelphia Federal Reserve reported that’s its business activity index came in at 1.0 in October against a forecast of 0.5 showing a slight improvement after two previous months of contraction. The markets saw little reaction to this data with GBP/USD trading at $1.5765.

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.

Qualifying recognised overseas pension scheme

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).

Yesterday saw yet another volatile day of trading with GBP/USD moving across a 2 ½ cent range. The dollars initial strength came from U.S. Treasury Secretary Timothy Geithner’s announcement that the U.S. would not engage in dollar devaluation and needed to work hard to preserve confidence in a strong dollar.

Sterling fell around 0.4% early on to $1.5835, well below Friday’s 8 ½ month high $1.6108. At 11am a CBI Industrial Trends Survey showing a guide to exports and outputs showed a decline to -28, way below the -19 consensus figure, this added pressure to sterling causing a fall to below $1.58, as Investors saw these figures as ‘concerning’ for the UK economic outlook.

Most investor eyes are fixed on today’s Bank of England minutes which are announced at 0930am.

The key information from the minutes will be the indication to how the voting for additional Quantitative Easing went.

Market players expect the Bank of England to show a three-way split, with policymaker Adam

Posen voting for more QE, which would act as a counterbalance to policymaker Andrew Sentance, who has voted for a rate increase since June.

Sterling could strengthen if the minutes show a better scenario than a 3 way split.

"The risk is on the downside for sterling," said currency strategist at RBC Capital Markets. "The market will look to whether the budget cuts are credible."

The dollar furthered gains across the board later that day as risk aversion saw investors head back into the dollar, as currencies such as the Euro and Aussie Dollar were sold off. The risk aversion came from a shock 25 basis point interest rate increase in China, which investors fear could lead to a setback in Chinas global growth and could slow Chinas vast demand for commodities.

The interest rate increase is also seen as a potential precautionary measure for vast inflation figures in the imminent future.

After the rate increase the Euro plummeted from as high as $1.4003 to as low as $1.3767, the Euro also lost ground against the pound moving from €1.1325 to €1.1412. Sterling however, lost further ground moving as low as $1.5695 but finished UK trading back above $1.57.

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.

Report-QROPS

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 fell away from an eight and a half month high yesterday against the US dollar rebounding due to uncertainty regarding how the Federal Reserve currently stands with their continued monetary easing.

Ben Bernanke spoke first on Friday about the case for more easing and this led in to the US dollar falling against a host of currencies. This was later corrected when Bernanke ate some of his words and perhaps realising that he had scared the markets, was a little more reserved as he stated that they would need to proceed cautiously with any actions.

By 3.00pm yesterday sterling was down 0.5% at $1.5899 having earlier fallen as low as $1.5837. GBP/USD closed the day slightly higher and closed the session at around $1.5890.

Data from Rightmove yesterday was largely ignored due to the USD rebound; the data showed asking prices in England and Wales have risen for the first time in four months in October.

On top of the US gains sterling was also kept under the cosh by the Euro with the Euro strengthening by 0.4% on the day moving to €1.1386 and into Asian trading this morning at around €1.1390. The Euro may get the opportunity to re-test last week’s six month high of €1.1314.

Looking ahead this week analysts and investors eyes are focused on tomorrows spending review which leaves sterling venerable ahead of what is expected to be the biggest public cuts in decades.

The UK could follow the US into more QE, however perhaps not to the same extent with a figure of $1 Trillion being banded around in the press for the US.

The minutes from the MPC’s last policy meeting are also due to be published tomorrow which may give us more of an idea what to expect. A couple of things that we can almost guarantee is that Adam Posen will call for more QE and Andrew Sentence will continue to ask for a rate hike as he has been doing since June.

Whatever the outcome and whatever the reflection in the markets sterling is likely to remain under considerable pressure in the short term.

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.