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The Alpha Generator seeks to increase an investor’s profit through an investment portfolio solution where the asset allocation will contain at least one security that will outperform all other securities in that portfolio without notably increasing the level of risk. This is achieved through relevant and prudent advice, financial education, and shrewd money management services. The Alpha Generator employs highly trained, intelligent analysts that have years of experience in the financial markets and knows them intimately. Each analyst is adept at a specific field in investment, whether it be stocks, bonds, ETFs, commodities or forex, and is ready and able to provide services regarding that field at your request. The Alpha Generator was primarily established to provide investors who do not have a background in finance, with the tools necessary to trade for themselves. We work with our clients tirelessly and continuously so that they turn a profit, month on month.

The team at the Alpha Generator has a great track record of customer service. Our results from consultancy services are excellent and the return on money management have people talking. Prospective clients are free to view the up-to-date statements of the investment accounts. They can be viewed on this website at any time.

The Alpha Generator was founded on the principles of transparency, honesty, and providing high quality services in the best interests of the customer.

Some Of Our Skills

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Market Analysis

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Our Team

Joshua Brown

Director Expertise: Macro trends impacting currencies, commodities and other markets. Technical and fundamental analysis.

Joshua Brown earned degrees in Economics, Finance, and Business Management from RMIT University in Melbourne, Australia before entering the financial industry in 2001. He has since worked for prestigious companies such as Goldman Sachs JBWere and the Commonwealth Bank of Australia. In his last position he was employed as a senior analyst, senior account manager and department manager at AvaTrade. His experience ranges from forex trading and commodity derivatives, all the way to portfolio management, investor relations and education, financial planning, and even penny stocks. He also currently writes for several financial websites such as DailyFX and Yahoo Finance.

Darren Frenkel

Senior Consultant Expertise: SEO, Marketing, Web development and programming, asset management and account management.

Darren has an extensive knowledge of web development and marketing fields. He is generally an all round superstar and is involved in high level account management services.

The Trade Marked Blog

Chinese Currency Outlook
Posted by admin | Uncategorized | 0

The RNB, CNH and CNY

Many traders are still unsure about the difference between the Chinese currencies.  The renminbi, which literally means "the people's currency" is represented by RNB, and the Yuan which is represented by codes CNH and CNY. To make life confusing, the CNY or the yuan is the basic unit of the renminbi but it's also a synonym of the currency and therefore the codes RNB and CNY are interchangeable when talking about the currency in a literal sense. The CNH, is the code of the Chinese currency when it is traded offshore while the CNY is the code used when it        is traded onshore. Due to the restrictions on monetary outflows, the CNH and the CNY can have short term variation in the price however generally in the long term, they do correlate almost perfectly.

The yuan has recently overtaken the EUR to become the second most traded currency in international finance and it is fast becoming an alternative reserve currency to the USD. Until 2005, the Chinese currency was pegged to the USD, however as the Chinese transitioned to a market economy, the monetary authority of China found it necessary to participate more actively in foreign exchange due to its increasing foreign trade. The Chinese have demonstrated that it will use new monetary powers to manipulate the currency in order to maintain its high rate of growth into the future.  It has on several occasions devalued the currency to increase competitiveness yet in January it was allowed to rise higher in order to tame inflation. In any case, People's Bank of China has stated that it will  gradually increase the flexibility of the exchange rate as it now floats within a narrow margin (1%) around a fixed base rate set in orientation to a basket of major global currencies (USD, JPY, EUR and KRW).

The Chinese Slowdown and what this means for the renminbi

Asian currencies (and emerging market currencies in general) have declined recently amid concerns of a slowdown in China's growth and U.S stimulus cuts with the USD/CNH bouncing off a low of 6.0136 to 6.0429. Many analysts are concerned that the maxim "the higher they climb, the harder they fall" may yet ring true for China and a sincere downturn may have huge push-pull consequences for the national currency. Inflation, a potential housing bubble, rising debt and decreasing manufacturing are all adding uncertainty to China's story. The high that we saw in earlier this year of the CNH against the USD could certainly be repeated as Bank of China continues efforts to restrain inflation and the Chinese and Americans economies continue to narrow the gap in terms of size, after all Chinese exports are still relatively very strong.   However the big question facing analysts is how long the Chinese can keep up the pace of growth - a slowdown  would severely offset the appreciation of the currency, but not enough to halt it completely (Lombard research says growth will drop to 4%!).  Chinese Authorities claim their currency is close to fair value, and indeed the currency may trade sideways for a while yet but it remains to be seen just how resilient the Yuan really is. The market consensus is that the USD/CNH will drop below 6.0 and according to the median estimate of nine economists recently polled by the South China Morning Post, the yuan will rise 2 per cent to 5.93 per US dollar by the end of this year. Nevertheless, it's hard to see the monetary authorities of China allowing the currency to drop much below that, especially if growth continues to fall and capital inflows diminish. All in all, I would say 6.0 is the right price target but we will see major fluctuation around that level in the months ahead. According to Euromoney magazine "the Chinese authorities are stuck between a rock and a hard place. A weaker currency would help boost export competitiveness and even help inflate away rising debt burdens, but at the cost of delaying the much-needed rebalancing of the Chinese economy while triggering a domestic and global political backlash."

14-02-05_15-37-46_USDCNH

Please see this link for an excellent info graphic on the Chinese situation: http://www.cnbc.com/id/101379823    

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+(61)431911322

Email

josh@thealphagenerator.com