FX.co ★ Offshore Yuan Steady After US-China Framework Deal

The offshore yuan stabilized at approximately 7.18 per dollar on Wednesday, as investors evaluated the outcomes from the recent two-day US-China trade discussions held in London. These negotiations culminated in the establishment of a framework agreement, which is designed to implement the Geneva consensus and further the commitments made during a recent presidential call between the two nations. As part of this framework, China is anticipated to loosen export restrictions on rare earth minerals and magnets, while the United States is considering easing its limitations on exporting advanced technology to China. Although both countries must secure final approval from their respective leaders before moving forward, this agreement has fostered investor optimism, suggesting it could alleviate the enduring trade tensions between these leading global economies. In anticipation of next week, Chinese investors are focusing on the release of significant economic indicators, including figures on industrial output, retail sales, and the unemployment rate.