Jane Foley, FX Strategist at Rabobank, suggests that Chinese economic data over the weekend painted a gloomy picture. Key Quotes “Industrial production rose a weaker than expected 5.4% y/y in February and retail sales climbed a slower than forecast 10.2% y/y. More vigour had been expected in the latter in particular as the February data incorporates the Lunar New Year holiday period. Some relief was provided by the 10.2% y/y rise in fixed asset investment. However, this was boosted by government spending and, bearing in mind the overcapacity in residential and factory infrastructure, this news may do more to raise debt than productive capacity.” For more information, read our latest forex news.