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).

Friday saw sterling rally against the dollar as the markets were driven by gains made by the Euro against the dollar. Weak US jobs data also put pressure on the dollar as the Labor Department data showed non-farm payrolls rose by only 39,000 in November which was much weaker than the expected figure for 140,000 new jobs. The unemployment figure also rose to 9.8% overall.

The euro continued its two day run of gains against the greenback and held onto the gains made the previous day against the pound as reports the European Central Bank’s buying of Irish and Portuguese bonds went some way to ease concerns over the euro zone debt crisis. Yet many analysts believe the euro could resume the selling pressure it has seen over recent weeks with investors wary about how long the ECB will continue to buy bonds after the European Central Bank President Jean-Claude Trichet on Thursday did not commit to ramping up bond buying.

The recent euro zone debt crisis has gripped the markets over the recent few weeks and market sentiment has been closely monitored towards the euro.

"Sterling is consolidating in ranges at the moment. All the focus is on Europe and any movement in sterling is just fallout from that," said an economist at AIB Group Treasury in Dublin.

Many investors seem concerned over the exposure the UK banking sector has to the euro zone debt problems especially those in Ireland and Spain, but for now it seems to just be a risk and could probably further develop into more of a concern in 2011.

Sterling rose to a day’s high of $1.5691 up over 0.5% on the day against the dollar and hit a days high of €1.1750 against a broadly stronger recovering euro.

The pound showed little reaction to UK data which showed the UK services sector activity eased in November which was in line with forecasts. Many analysts felt we would have seen the data beat expectations after the UK saw strong manufacturing data earlier in the week.

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.