The Canadian dollar was the first currency to react to the seemingly balanced Fed decision, thus showing its vulnerability with USD/CAD rising above 1.25. The weakness now turned into a crash. USD/CAD made a strong move upwards and hit yet another level last seen in 2009: 1.2680. Is the road to 1.30 clear? Here are the reasons for the fall: Stronger dollar in reaction to the Fed: It certainly took a long time for the markets to react, but eventually they found the words they needed: the assessment of the labor market was upgraded to “strong” from “solid” and the economy looks better than it did beforehand. And while the Fed is worried because of international developments, it isn’t too worried about a US slowdown. What do they know about the GDP release tomorrow? Falling oil prices: The usual culprit for a weaker loonie strikes again, with WTI under $44 once again. We are seeing pressure in the black gold after the stabilization. In any case, prices of Canada critical export are not going up. Downwards revision of Canadian jobs data: Canada gained only 121K jobs in 2014, around one third less than originally reported throughout the year. And also the unemployment rate is up to 6.7%. The initial publication only had a minor impact but this certainly weighs now. Ongoing rout from BOC cut: The Bank of Canada didn’t change interest rates since 2010, until the surprising rate cut last week. Even if this isn’t the beginning of a loosening cycle, the move still weighs heavily on the loonie, especially as the Fed is going in the opposite direction. More: USD/CAD: Running Away; Buy Dips targeting 1.30 – CBA Here is the chart: Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next Did the Fed hint about a strong GDP report? Yohay Elam 8 years The Canadian dollar was the first currency to react to the seemingly balanced Fed decision, thus showing its vulnerability with USD/CAD rising above 1.25. The weakness now turned into a crash. USD/CAD made a strong move upwards and hit yet another level last seen in 2009: 1.2680. Is the road to 1.30 clear? Here are the reasons for the fall: Stronger dollar in reaction to the Fed: It certainly took a long time for the markets to react, but eventually they found the words they needed: the assessment of the labor market was upgraded to "strong" from "solid" and the… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.