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 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 was weak on Friday, falling across the board after the U.K. Nationwide Consumer Confidence unexpectedly declined to a 20-month low. The decline in confidence could be largely attributed to the austerity measures and tax hikes next year. The budget cut could mean up to 500,000 public-sector jobs losses and an VAT will increase from 17.5% to 20% on 04/01/11.
The US Dollar put in impressive performance on Friday finishing the week almost squarely where it began, amidst exceedingly choppy market conditions. In terms of economic data it was fairly quiet; a Leading Indicators report was the only major event through the US trading session and fell exactly in line with consensus forecasts. However, 9 of 10 of the index’s components pointed to growth through the next three to six months. During the week ahead liquidity will reduce ahead of the Christmas holiday, so price action could be volatile. Economic data from the US is quiet today.
On Thursday the European Union summit produced few surprises and had effectively zero effect on the Euro. That said the Euro traded higher against the US Dollar and the market speculated that the EU stood ready to provide bailout funds in a bid to preserve the monetary union. On Friday a strong German IFO business confidence reported lifted fundamental forecasts for Europe’s largest economy, but German economic growth has never been in doubt; it is the Eurozone periphery that is the concern. This focus was apparent on Friday as Moody’s downgraded Spain to Baa1 and said that it estimates that funding from the Irish central bank may exceed €40 billion.
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.
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