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 pound continued to make losses against a broadly stronger dollar on Friday as risk aversion continued within the markets.
Sterling reached a two month low against the greenback of $1.5587 down over 1% on the day from the earlier session high of $1.5770.
The dollar gained against all 16 of its most traded counterparts as concern over the conflict between North and South Korea increased the demand for the safety of the US currency.
The euro continued to weaken as it came under heavy selling pressure on the increasing worries the debt crisis currently in the euro zone will spread beyond Ireland and Greece. Many analysts are now speculating Portugal may be next to resort to seeking financial aid. The pound rallied against the single currency in the morning session as it reached a day’s high of €1.1872 but during the afternoon fell back to trade around the €1.18 mark.
The single currency fell broadly after a report in Financial Times Deutschland said a majority of euro zone nations and the European Central Bank were urging Portugal to apply for a bailout, though European officials denied this, as well as the Portuguese government which said the reports were “completely false”.
The euro also fell over one cent against the dollar to $1.3202 on Friday, it has now fallen by almost four cents, or 3% this week.
Many analysts are stating sterling is seen as a better bet than the euro at the moment, but there are still concerns over the UK’s exposure to euro zone debt which could result in sterling continuing the current run of weakness against the dollar, which has recently improved on safe haven flows and stronger than expected US data.
The UK also saw a report from the UK’s Land Registry on Friday which showed house prices in England and Wales fell 0.8% in October which is the biggest monthly fall since February 2009.
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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