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 received a mixed reception in the markets on a day that saw it hit a five month low against the Euro whilst continuing to be the more vulnerable of the currency pairing. With the single currency having been helped by Tuesday’s comments from ECB Governing Council member Axel Weber, it didn’t take much for GBP to be pushed lower.

Figures outlining the UK labour market were semi-contradictory; the number of Britons claiming jobless benefits last month rose by 5,300 to 1.47 million , yet the wider measure of the unemployment rate dipped in August to its lowest in more than a year.

Underlying fears remain that if positive signs do not start to emerge within the employment market it may prompt a fresh round of QE from The Bank of England. This in turn would have a detrimental effect on the pound as the printing of more money merely further reduces its’ value.

“The data is mixed overall but scratch under the surface and there are signs that the labour market is coming under increasing pressure from slowing growth and companies’ mounting concerns over the economic outlook,” said Global Insight.

Positive noises came in the form of the UK’s consumer price index with it posting a 3.1% figure in September, nudging in more than a percentage point above the 2% target set by the Bank of England. This could be interpreted as an argument against adding more stimulus as it could encourage inflation, although this would not be seen as a sufficient deterrent to sway the Banks’ medium term outlook.

An additional boost for GBP came in the form of news that Standard Chartered Bank was launching a $5.3 billion rights issue which would require overseas investors to buy the pound.

The Greenback failed to rally off the back off weak UK consumer confidence data as it backtracked under the pressure of the Federal Reserves’ expectations of more quantitative easing. The minutes released from the Feds’ 21 meeting showed policymakers focused on buying additional longer-term Treasury securities. Their second focus was to prepare the public for higher inflation in the near future and thus to cut back on its’ main fuel, i.e. spending.

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.