The Canadian dollar was struggling to find a floor on Monday as it fell as low as 76.19 cents US before breaking into positive territory.

The currency’s instability comes as traders brace for Jerome Powell’s first rate decision as U.S. Federal Reserve Chair on Wednesday.  

Trade uncertainty and soft domestic data have also been weighing on the loonie in recent weeks.  On Friday, the currency hit its lowest level since last June in the wake of a dovish speech by Bank of Canada Governor Stephen Poloz, weak housing data, and NAFTA tension.

“I think longer term as we look through the end of the year, we’ll still have a weaker tone,” Paul Taylor, chief investment officer of asset allocation at BMO Global Asset Management, told BNN in an interview Monday.

Taylor added that with new B-20 mortgage rules introduced in January, there’s been a slowdown in the Canadian economy in the first half of the year compared with the growth seen in the back half of 2017.  

“I think the Bank of Canada is going to have to wait, sit on their hands, to see how significant that slowing is.”  

The loonie was trading at 76.56 U.S. cents as of 4 p.m. ET on Monday.