Sterling Drops against Dollar Pound Gets Back to €1.1359

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 income drawdown, flexible pensionsor QROPS (Qualifying Recognised Overseas Pension Scheme) should be considered to maximise the Pension drawdown, 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,income drawdown now including flexible pensions, a QROPS and QNUPS (Qualifying non UK Pension schemes).

IN THE UK

• On Friday sterling drops from a five week high against the US dollar falling to $1.6312.
• This morning BBA mortgage approvals show a slight increase, posting a figure of 31,700 against a estimate of 31,300 the news is encouraging for the UK housing market but does little to help the pound on its own.
• Weak data releases in the UK have limited the pound’s ability to take advantage of the debt problems affecting the Eurozone, the pound managed to get back to €1.1359 but this is below where many experts feel the pound should be trading.
• Many investors with an interest in UK stocks and the pound will be cautious ahead of tomorrow’s 2nd quarter GDP figures for the UK. The figure is expected to show a disappointing growth of 0.2% after two fairly flat last quarters.

ELSEWHERE

• On Friday German IFO survey showed a decline in all three components suggesting activity is beginning to slow up in Germany. Given that Germany is one of the only buoyant economies in the Eurozone the figures could potentially have a negative affect on euro strength if the next results continue the trend.
• After the tragic events in Norway over the weekend the European markets are wary of further far-right extremist actions as police are put on high alert.
• US debt talks have still not resulted in any agreements, the deadline of August 2nd is getting ever closer and the Treasury’s Tim Geithner has warned of potential melt down in the US economy if meetings continue to fail.
• Despite the ongoing debt issues the dollar out outperformed the euro on Friday as EURUSD dropped to $1.4353
• Moody’s cut Greece’s credit rating by 3 notches to Ca this morning, just one notch above default. Moody’s have said the recently agreed bailout should make Greece’s attempts to reduce its debt easier, but said the country faces very difficult challenges.

DATA TO LOOK OUT FOR

• A very quiet day for data releases with just New Zealand Trade balance released at 11.45pm and overnight the Governor of RBA speaks.

Gerard Associates Ltd advises UK residents, expats and people considering living abroad on the technical and currency options available for Pensions, pension income drawdown, flexible 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.


Russel Mori writes for Gerard Associates LTD, for more information on QROPS, QROPS Pensions, QROPS List, QROPS Providers, QROPS Guernsey info available online.