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 received little or no help from economic data, in a day that saw both a rise and a fall against the Greenback. Technical analysts commented that the pound had run into resistance at the $1.5968 level on Tuesday which is when it hit its highest level in six months

As expected, The Bank of England kept interest rates at a record low 0.5% and kept quiet about any new quantitative easing measures. The uncertainty surrounding an economic recovery and the damaging effects from the various cuts of the budget was more than enough to sway the minds of the members of the Monetary Policy Committee.

The positive movement for the pound came off the back of Euro declines which in turn had its own rally on positive news out of Europe. Support has come off the back of a run of positive UK economic data releases and a healthier fiscal outlook.

The negative trend occurred when traders digested the figures released by Barclays; the bank reported a 44% rise in half-year profits, which despite beating market forecasts was over shadowed by a slowdown in the second quarter in their investment division with the top-line income standing at £3.38 billion, a 15% drop from the previous quarter.

The Euro received a boost from three of its member countries. German industrial orders rose 3.2% in June which was over and above expectations and was fuelled by strong demand from overseas. Further support came in the guise of a successful Spanish debt auction and some positive sounds from the International Monetary Fund regarding Greece’s progress in reducing its deficit completed a trio of supporting data for the single currency.

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.