FX.co ★ Offshore Yuan Remains Tepid

The offshore yuan hovered around 7.30 per dollar on Friday, reflecting a cautious trading day as investors assessed the persistent uncertainties in Sino-US trade relations. On Thursday evening, President Trump indicated optimism, suggesting that a trade agreement with China might be reached within three to four weeks. This statement came after Beijing articulated its prerequisites for resuming negotiations, emphasizing the need for greater respect, policy consistency, and a designated US negotiator with clear support from Trump. Concurrently, recent data revealed China's GDP growth in the first quarter surpassed expectations, marking the fastest pace in over a year. March's industrial output and retail sales also outperformed predictions, and the unemployment rate slightly declined, suggesting that ongoing policy measures are effectively bolstering the economy. Despite these developments, the yuan is poised for minor losses for the week.