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.