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.