On Thursday, the offshore yuan strengthened to approximately 7.18 per dollar, ending a brief two-day decline, as it was buoyed by a weakening US dollar. The downturn in the dollar followed an announcement from US President Trump regarding the forthcoming dispatch of formal communications to significant trade partners. These communications are anticipated to detail unilateral tariffs, designed to pressure nations into revising trade agreements. Further contributing to the dollar’s decline was unexpectedly weak inflation data for May, which has spurred market speculation that the Federal Reserve might start reducing interest rates by September. Additionally, the yuan gained momentum from the conclusion of a two-day series of US-China trade discussions held in London. These talks resulted in a framework agreement aimed at operationalizing the Geneva consensus and reinforcing commitments made during a recent presidential phone conversation. Within China, attention is now turning towards a series of crucial economic indicators scheduled for release next week, including figures on industrial production, retail sales, and the unemployment rate.
The material has been provided by InstaForex Company – www.instaforex.com
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