FX.co ★ Offshore Yuan Slips on Trade Caution

On Monday, the offshore yuan declined to approximately 7.17 per dollar, reversing its gains from the previous session. This shift came as caution heightened ahead of impending US tariff deadlines. Market sentiment was negatively impacted following President Trump's confirmation that new tariffs would be enacted on August 1, rather than July 9. Treasury Secretary Bessent emphasized that countries lacking trade agreements by this deadline will see tariffs revert to levels established on April 2. To date, only China, the UK, and Vietnam have secured partial trade agreements with the United States. The Chinese Commerce Ministry has stated that efforts are ongoing between the US and China to implement the London framework, with the US beginning to lift export restrictions and China processing license applications for controlled items. The focus now shifts to forthcoming significant economic releases, particularly the June CPI and PPI data, following a fourth consecutive monthly decline in consumer prices in May and the most significant drop in producer prices in nearly two years. Investors are also anticipating possible fresh stimulus indications from China's Politburo meeting scheduled for later this month.