06:43 AM EST, 12/19/2024 (MT Newswires) -- The Canadian dollar (CAD or loonie) has slumped below 69 US cents in recent days and Wednesday's FOMC in the United States decision didn't help its cause, said Bank of Montreal (BMO).

According to the bank, it's all negative sentiment for the currency right now:

-- Rate spreads, which drive the vast majority of performance,

have widened drastically, and a more hawkish Federal

Reserve dot plot only hurt sentiment further. It's a good

thing Bank of Canada Governor Tiff Macklem and other officials communicated toward a pause last week.

-- Trade uncertainty continues, with possible US tariffs a direct risk for the currency. For whatever reason, Canada is catching the brunt of social media attention right now.

-- Political uncertainty with this week's surprise resignation by the finance minister just reinforces the fragility of the current parliament.

-- Oil prices have been neutral through this latest selloff, but

aren't the drivers of the loonie that they once were.