RBC Global Insight: January 2026
I am pleased to share the latest investment strategy report from RBC Wealth Management—Global Insight, which provides our current thoughts on asset classes, the economy, and timely issues that impact investment strategy. This month’s highlights include:
Long-term economic trends have left the U.S. economy increasingly reliant on spending by upper-income households. We unpack the potential implications for economic stability and Federal Reserve policymaking.
Global equity: Navigating 2026 growth, AI momentum, and election-year dynamics:
Equity markets appear poised for moderate gains, driven by easing inflation, rate cuts, and steady earnings. AI promises more near-term capital spending and future productivity boosts, while election-year dynamics usually spark volatility in both directions.
Global fixed income: A slow start out of the gates:
Last year saw most central banks ease policy rates. 2026 will likely see different courses of action.
2026 TFSA Contributions & RRSP Deadline
Tax Free Savings Account: You can now make your Tax-Free Savings Account (TFSA) contribution for 2026 (up to $7,000.00).
If you have not maximized your TFSA contributions in the past, you can also catch up on your 2009-2025 contributions. The maximum possible contribution room for all years (including 2026) is $109,000 (assuming you were at least age 18 in 2009).
RRSP Deadline: The RRSP contribution deadline for the 2025 tax year is March 2, 2026.
Your contribution limit for 2025 is 18% of your 2024 earned income, to a maximum of $32,490 with certain adjustments (e.g. less any Pension Adjustment appearing on your T4 tax slip and plus any unused contribution room carried forward from previous years). For your exact contribution limit, check your latest Notice of Assessment, Notice of Reassessment or T1028 form, or log on to your Canada Revenue Agency account at MyCRA
You can also make your 2026 contribution any time starting January 1, 2026 to benefit from additional tax-deferred compounding. The maximum RRSP contribution room you can earn for 2026 is $33,810.
Canada’s housing Market Update
Quiet December caps off lackluster 2025 for Canada’s housing markets
Home resales were subdued in December in most areas around Canada. Adverse weather may have been a factor in some cases, but persistent affordability challenges, economic uncertainty and job market softness have, no doubt, kept many prospective homebuyers at a standstill.
In a way, a lackluster finish to 2025 marked the year for several housing markets. What started as promising recoveries in Vancouver, Fraser Valley, Calgary, Edmonton, Hamilton, Toronto, Ottawa, Montreal and Halifax supported by significant interest rate cuts were quickly dashed by the trade war, and ensuing loss of confidence.
Global Currency Outlook- New Year 2026
The two-year-long fall in the U.S. dollar appears to have temporarily halted, challenging our forecasts that the greenback would continue to decline through 2025 and into next year. The dollar’s modest rally since September stems from a view that stronger-than-expected U.S. economic growth and continued technology investments will pull capital flows into the U.S., at least in the short term.
Emerging-market currencies, in our opinion, will continue to be the main beneficiary of further U.S.-dollar depreciation given improving fiscal situations and attractive bond yields.
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This information is not investment advice and should be used only in conjunction with a discussion with your RBC Dominion Securities Inc. Investment Advisor. This will ensure that your own circumstances have been considered properly and that action is taken on the latest available information. The information contained herein has been obtained from sources believed to be reliable at the time obtained but neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers can guarantee its accuracy or completeness. This report is not and under no circumstances is to be construed as an offer to sell or the solicitation of an offer to buy any securities. This report is furnished on the basis and understanding that neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers is to be under any responsibility or liability whatsoever in respect thereof. The inventories of RBC Dominion Securities Inc. may from time to time include securities mentioned herein. RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate entities which are affiliated. *Member-Canadian Investor Protection Fund. RBC Dominion Securities Inc. is a member company of RBC Wealth Management, a business segment of Royal Bank of Canada. ®Registered trademarks of Royal Bank of Canada. Used under licence. © 2026 RBC Dominion Securities Inc. All rights reserved.