07:34 AM EDT, 03/11/2026 (MT Newswires) -- The Canadian dollar (CAD or loonie) has been the best-performing G10 currency since the start of the Iran conflict, said ING.

The equity market holding up relatively well remains very crucial as it allows the loonie -- like the Australian dollar (AUD) -- to fully benefit from its energy net-exporter status without suffering from major risk sentiment fallout, wrote the bank in a note.

Domestically, markets have also priced in a rate hike by the Bank of Canada by year-end, stated ING.

The bank pointed out that it isn't convinced just yet and remains cautious about Canada's economic outlook due to upcoming USMCA trade deal renegotiations. However, further easing now seems off the table.

Should markets see a somewhat gradual unwinding of the oil rally with risk sentiment recovering further, USD/CAD may stay under some pressure and break below the 1.35, late-January lows, added ING.