"The PBOC may now revert to quietly shoring up the currency as a gesture of goodwill," said Julian Evans-Pritchard, senior China economist at London-based Capital Economics Ltd.

China wants to hold more talks to iron out the details of a deal touted by Trump before agreeing to sign it, according to people familiar with the matter.

Treasury Secretary Steven Mnuchin indicated on Friday that, once the first phase of a trade agreement is complete, he'll consider lifting a U.S. designation that China manipulates its currency.

Still, Evans-Pritchard is skeptical that Beijing and Washington are any closer to a lasting resolution, and he's far from the only one.

A comprehensive trade deal before America's 2020 election seems unlikely, Citigroup analysts Lu Sun and Gaurav Garg said in a client note. The currency pact in the phase-one agreement will likely entail a commitment not to devalue the yuan, instead of "forced, one-way" yuan appreciation, Citi said. Bullish momentum for the offshore yuan could extend for a bit, though obstacles to the currency staying strong past 7.0 per dollar seem high, according to the analysts.

Deutsche Bank AG described the pact agreed over the weekend as "very limited" and noted that it won't be signed for several weeks.

"Not many businesses that have been disturbed by the trade war will yet be able to see a clear pathway ahead," Deutsche Bank strategists, including London-based Jim Reid and Craig Nicol, said in a note to clients. We're not "close to solving many of the bigger issues behind the conflict."

Copyright 2019 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.