FX.co ★ Offshore Yuan Hits 2-Week High

The offshore yuan appreciated to over 7.10 per dollar on Thursday, marking its highest value in two weeks, as investors anticipated the release of significant economic data scheduled for tomorrow. Among these anticipated figures, retail sales are projected to decelerate for the fifth straight month. This marks the longest period of slowed consumption growth since the post-COVID recovery began losing steam over four years ago. The upcoming data, which also includes information on housing, industrial production, and unemployment, is expected to heighten concerns about a broader slowdown in economic growth. Earlier this week, data indicated that consumer prices rose by 0.2% year-on-year in October, bouncing back from the previous month and surpassing expectations. Moreover, producer prices declined by 2.1%, marking the smallest drop in fourteen months and suggesting a gradual alleviation of deflationary pressures at the factory level.