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 pensions or QROPS (Qualifying Recognised Overseas Pension Scheme) should be considered to maximize 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
€ Producer Price Index figures on Friday morning in the UK showed a fall in prices that manufacturers buy and sell at. The pound was left mainly unaffected after the announcement but values fluctuated later on as overseas developments took place.
€ During the course of the day the pound made gains versus against the euro as rumours circulated trading floors that several Eurozone nations would be downgraded, GBPEUR rallied back through the psychological ‚¬1.20 mark to hit a high of ‚¬1.2091 late in the evening.
€ GBPUSD didn't fare so well, falling to a 18 month low of $1.5234 tracking a fall in EURUSD as concerned investors head to the reassurance of the safe haven currencies.
€ George Osbourne will sign a deal today with Hong Kong to help the City of London become a offshore trading centre for the Chinese Renminbi.
ELSEWHERE
€ The main news last week was S&P's decision on Friday to downgrade the credit ratings of 9 Eurozone member states, the most notable of these were France and Austria being downgraded from the top tier rating.
€ Concerns now surround the European Financial Stability Facility as France and Austria's downgrade mean the fund could lose its own rating and potentially ‚¬180bn of lending capacity.
€ Sentiment over Europe had started to improve last week and bond auctions went well, EURUSD had risen sharply to a high of $1.2874 before losing over 2 cents to fall to $1.26342 ahead of the S&P announcement.
€ Adding to Eurozone woes were threats of a Greek default increased after talks to restructure the country's debt broke down. Negotiations failed over the size of the haircut to be taken by banks.
€ Following the French downgrade, EURJPY hit a fresh 11 year low of 97.15yen, the euro under obvious pressure and yen benefiting from it's safe haven status being both contributing factors.
€ In the US, some of the optimism about housing, consumer spending and the broader economy eased back a bit last week, amid a splattering of weaker economic reports. Retail sales rose just 0.1% in December and core retail sales fell by the same amount. Holiday sales came in right in line with expectations, rising 5.1%.
€ US weekly first-time jobless claims spiked up to 399,000 and job openings listed in the JOLTs survey fell slightly..
€ Former MoF official Sakakibara (aka Mr. Yen) expects that Japan could be downgraded soon; Strong Yen is likely to continue, however any intervention in the market would most likely be unsuccessful without the help of the US.
DATA TO LOOK OUT FOR (all times GMT)
€ A relatively quiet day for data today, markets will be accessing the fallout from Friday European downgrades and how they will affect the Eurozone crisis.
€ Eurozone President Draghi speaks this evening at a press conferences with Q&A, he will undoubtedly face many questions about the severity of the downgrades and how they affect the EFSF.
€ Business Confidence Figures are released in New Zealand tonight at 9.00pm
Current Spot Rates (9.00am)
USD EUR AUD CAD CHF DKK NOK HKD SEK ZAR JPY
GBP 1.5313 1.2079 1.4840 1.5613 1.4601 8.9836 9.2798 11.8970 10.70 12.43 117.676
USD 0.7890 0.9691 1.0196 0.9535 5.8666 6.0601 7.77 6.99 8.12 76.847
EUR 1.2675 1.2286 1.2926 1.2088 7.4374 7.6826 9.85 8.86 10.29 97.422
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.
Cash and income timing from a UK Pension income drawdown, flexible pensions or QROPS (Qualifying Recognised Overseas Pension Scheme) should be considered to maximize 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
€ Producer Price Index figures on Friday morning in the UK showed a fall in prices that manufacturers buy and sell at. The pound was left mainly unaffected after the announcement but values fluctuated later on as overseas developments took place.
€ During the course of the day the pound made gains versus against the euro as rumours circulated trading floors that several Eurozone nations would be downgraded, GBPEUR rallied back through the psychological ‚¬1.20 mark to hit a high of ‚¬1.2091 late in the evening.
€ GBPUSD didn't fare so well, falling to a 18 month low of $1.5234 tracking a fall in EURUSD as concerned investors head to the reassurance of the safe haven currencies.
€ George Osbourne will sign a deal today with Hong Kong to help the City of London become a offshore trading centre for the Chinese Renminbi.
ELSEWHERE
€ The main news last week was S&P's decision on Friday to downgrade the credit ratings of 9 Eurozone member states, the most notable of these were France and Austria being downgraded from the top tier rating.
€ Concerns now surround the European Financial Stability Facility as France and Austria's downgrade mean the fund could lose its own rating and potentially ‚¬180bn of lending capacity.
€ Sentiment over Europe had started to improve last week and bond auctions went well, EURUSD had risen sharply to a high of $1.2874 before losing over 2 cents to fall to $1.26342 ahead of the S&P announcement.
€ Adding to Eurozone woes were threats of a Greek default increased after talks to restructure the country's debt broke down. Negotiations failed over the size of the haircut to be taken by banks.
€ Following the French downgrade, EURJPY hit a fresh 11 year low of 97.15yen, the euro under obvious pressure and yen benefiting from it's safe haven status being both contributing factors.
€ In the US, some of the optimism about housing, consumer spending and the broader economy eased back a bit last week, amid a splattering of weaker economic reports. Retail sales rose just 0.1% in December and core retail sales fell by the same amount. Holiday sales came in right in line with expectations, rising 5.1%.
€ US weekly first-time jobless claims spiked up to 399,000 and job openings listed in the JOLTs survey fell slightly..
€ Former MoF official Sakakibara (aka Mr. Yen) expects that Japan could be downgraded soon; Strong Yen is likely to continue, however any intervention in the market would most likely be unsuccessful without the help of the US.
DATA TO LOOK OUT FOR (all times GMT)
€ A relatively quiet day for data today, markets will be accessing the fallout from Friday European downgrades and how they will affect the Eurozone crisis.
€ Eurozone President Draghi speaks this evening at a press conferences with Q&A, he will undoubtedly face many questions about the severity of the downgrades and how they affect the EFSF.
€ Business Confidence Figures are released in New Zealand tonight at 9.00pm
Current Spot Rates (9.00am)
USD EUR AUD CAD CHF DKK NOK HKD SEK ZAR JPY
GBP 1.5313 1.2079 1.4840 1.5613 1.4601 8.9836 9.2798 11.8970 10.70 12.43 117.676
USD 0.7890 0.9691 1.0196 0.9535 5.8666 6.0601 7.77 6.99 8.12 76.847
EUR 1.2675 1.2286 1.2926 1.2088 7.4374 7.6826 9.85 8.86 10.29 97.422
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.