Yuan’s Roller‑Coaster Ride: Still Shaky After a Strong Bounce
After a rocking start to the week, the Chinese yuan is showing that it’s still out for drama. Investors are staying on the sidelines, wary of the next move.
Offshore Yuan Hits a Multi‑Month High
On Monday, the offshore yuan leapt to a level it hasn’t seen in months. But that surge ran out of steam fast, leaving the currency wobbling again.
Economic Data: China’s Recovery on a Slippery Slide
- Caixin Services PMI drops to its lowest since September—yes, that’s a red flag.
- New orders are slowing down like a traffic jam.
- Employment contracts for the second month in a row; people are out of work.
- Companies are cutting prices to try and shake customers out of their pockets.
- May Day holiday brings a tiny spike in consumer spending, but still shy of pre‑pandemic levels.
U.S.‑China Trade: A Tangled Web Still Untying
Both sides say they’re ready to chat, but the conversation has been stalled. With tariffs lurking like unwanted spoilers, investors are restless. If there’s no concrete change or a bright boost to domestic data, the yuan’s roller‑coaster is likely to keep going.
