subject: An Overview Of Ups And Downs Of Exchange Rates [print this page] We continue our daily look at factors affecting currencies allowing some insight into market conditions affecting exchange rates. Cash and income timing for UK Pensions and QROPS should be considered to maximise the Pension, QROPS and investment income and benefits taken.
Investment market volatility and currency exchange remains a challenge. Things are still very volatile and we are in unique global influencing territory.In conjunction with investment returns, currency exchange continues to concern many expats with UK Pensions, QROPS and now QNUPS.
Sterling made significant gains on Friday, boosted by unexpectedly strong economic growth numbers which left it on course for its biggest one-day percentage gain against the euro in more than seven weeks.
Data showed gross domestic product jumped up to 1.1% in the second quarter of 2010. The strongest growth in four years and almost twice as fast as forecast, 0.6%.
The data showed the economy entered the second quarter of the year on a much firmer footing than previously thought; soothing concerns that the governments planned austerity measures could put a sharp dampener on the recovery.
This suggests the situation with the UK economy is not as bad as previously thought and it allows a little optimism going into the second half of the year.
By mid afternoon sterling was up 0.8% against the US dollar at $1.5377, hitting a days high $1.5450.
Sterling was also on course for its biggest one day percentage gain against the euro in more than seven weeks as the single European currency came under heavy selling pressure ahead of the European bank stress test results in the late afternoon.
The euro lost 1.4% against sterling on the day, with GBP/EUR moving up to 1.2024.
Traders said that if the pound could maintain levels above 1.19 there may be more room for sterling gains.
Analysts and traders said that sterlings gains may be limited as the European stress test results may drive risk aversion in the markets. Analysts also warned that second quarter growth figures may be good but with the governments planned austerity measures it may be as good as it gets for the time being.
Data from the British Bankers' Association on Friday showed mortgage approvals in Britain fell 8% in June from a year ago, while mortgage lending growth also slowed.
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 Pensions, investments, currency exchange and guidance on taxation in most popular sunnier climates. This with the re-assurance and security of UK authorised and regulated advice essential tools for your security.
