FX.co ★ Yuan Holds Near 31-Month Peak

The offshore yuan saw a slight decrease, dipping below 6.98 per dollar, yet it stayed close to its highest mark since May 2023. Investors are examining the latest PMI figures to gauge the economic prospects of the country. A private survey indicated that China's composite PMI has sustained its expansionary trend for seven consecutive months, although growth in the services sector has slowed to its weakest in half a year. On the other hand, official figures released last week showed the composite PMI reaching a six-month high, with a surprising return to expansion in manufacturing activity and the services PMI hitting a four-month peak. Markets are now anticipating the release of trade balance and GDP figures later this month for additional insights. President Xi Jinping has expressed confidence that the economy is on course to achieve approximately 5% growth by 2025. Meanwhile, the US dollar gained strength as investors turned their attention to a series of data expected this week, which could significantly impact the Federal Reserve's policy outlook. Recent robust US data has led markets to anticipate a slower pace of interest rate cuts this year.