Soaring oil prices boost the Canadian dollar's breakout against the trend, making it a new safe-haven favorite in the forex market due to energy dividends.

Golden Ten Data reported on March 5 that in the foreign exchange market, which sees a daily trading volume of $9.5 trillion, the Canadian dollar has become the preferred currency, thanks to its close correlation with oil prices amid the ongoing Middle East war. This week, most major currencies have fallen against the US dollar due to the US-Iran conflict, while the Canadian dollar has withstood the turmoil sweeping the forex market. Since the attacks began last weekend, oil prices have continued to rise, providing strong support for Canada, the world’s fourth-largest oil producer. This has prompted strategists to emphasize the resilience of the Canadian dollar and call for continued bullishness in the short term. Valentin Marinov, Head of G-10 FX Research at Crédit Agricole, said in an interview: “Since the outbreak of the US-Iran conflict, the Canadian dollar has become the only major currency that has basically managed to hold its ground against the strong US dollar.”