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 started Friday's trading day making losses against majority of its currency pairs, most notably against the dollar and the euro as traders blamed a substantial sell order in the market. Traders stated the reported order which was put at 3.5 billion was related to a Standard Chartered rights issue and had encouraged other investors to take profits.
The recent run of strong UK data which included GDP, PMI manufacturing, PMI index services and Halifax house prices all have supported the pound and also held off the BoE from starting a new bout of quantitative easing.
"We don't think the Bank will opt for QE (quantitative easing) next month or in January with data the way it's been going. The market's in a bit of wait and see mode and we've got fiscal austerity on the way." said a currency strategist at RBC Capital Markets.
The pound moved from the day's low of 1.1397 to end the session trading near the day's high of 1.1553. Against the dollar the pound reached a high of $1.6292 from the morning's low of 1.6168.
Elsewhere the eurozone released retail sales which for both Month on month and Year on year unexpectedly fell this allowed the pound to rally against the single currency. Germany also saw factory orders fall with the figure coming in at -0.4% against predicted level of 0.5% for September with the Year on year figure coming in at 13.9% against the last release of 24.1%. Also a release by the Bank of Spain stating Spain's economy stalled in Q3 as the deepest austerity measures in three decades undermined the recovery.
The US released some stronger data which helped support the greenback this included Nonfarm payrolls which for October came in at 151k against expectations of 61k which is the first increase to payrolls since May. Unemployment data followed which showed no change from the previous release and means the current jobless rate in the US stands at 9.6%. This allowed the dollar to retrace some of the day's earlier losses in the afternoon session and finally move away from the near 9 month low against the euro.
Gerard Associates Ltd advises expats and people considering living abroad on the technical and currency options available for QROPS 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.
