Oil supported as China opens borders
FXCM's Brent and WTI CFDs, UKOil and USOil, have moved into their neutral zone between the blue bands. This is a movement of strength. China is opening its borders for the first time in 3 years. This is part of its new Covid-19 policy.
The movement into neutral follows one of the worst starts to the year by oil. China is the world's biggest importer of oil. The weaker jobs data and poor ISM Services print on Friday give rise to the possibility of a more dovish Fed and a weaker greenback. This may also be a factor which is supporting crude. OPEC+ has also shown its willingness to cut production to support oil prices.
Russell Shor
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.
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