4 Unexpected Factors That May Boost the Canadian Dollar in 2026

Written by Emily J. Thompson, Senior Investment Analyst

Source: InvestingliveForex

Updated: Jan 09 2026

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Source: InvestingliveForex

Market Reactions vs. Headlines: Despite negative headlines regarding trade and housing, the Canadian dollar (CAD) may be stronger than expected due to underlying economic resilience and delayed capital investments waiting for clarity in trade rules.
Consumer Spending Resilience: Contrary to assumptions that falling housing prices lead to economic downturns, Canadian consumer spending remained strong, indicating households were not overleveraged and reducing recession risks.
Political Stability as an Advantage: Canada’s predictable political environment and stable institutions provide a hidden advantage for its currency, as long-term investors prefer stability that lowers risk premiums.
Impact of U.S. Supreme Court Decision: A pending Supreme Court ruling on presidential tariff powers could significantly influence global capital flows and the CAD, with potential outcomes affecting market confidence and institutional stability.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.