What's takeaway 1 on Pulse Check?

74% of Canadians see cost as the primary barrier to climate action.

What's takeaway 2 on Pulse Check?

Less than 20% of executives are deterred by political uncertainties in climate commitments.

What are the market implications for Pulse Check?

Traders should monitor shifts in public opinion and corporate commitments toward climate initiatives, particularly as economic pressures evolve. The market may react significantly if affordability and accessibility issues are addressed in government policies, potentially impacting the USD/CAD pair.

What are the risks to this view on Pulse Check?

If political uncertainties worsen or if federal climate funding is significantly underdelivered, market sentiment may shift sharply, reversing current positive momentum. Such deviations from expectations could lead to heightened volatility in associated currency pairs.

Pulse Check: What a trio of surveys tells us about climate action in Canada

What the desk is arguing

The desk frames the surveys' data as a sign of increasing public engagement with climate issues and corporate responsibility in Canada. Most notably, a vast majority of consumers (74%) indicate that cost remains the primary hindrance to acting on climate change, showing a critical intersection between environmental concerns and economic realities. This essential insight from the RBC surveys highlights the need for more accessible and affordable sustainable solutions to facilitate broader climate action.

Further, the confidence seen among Canadian executives—where fewer than 20% cite political factors as a dampener on their climate commitments—suggests that businesses may prioritize sustainability even amid political uncertainty. This implies an area of opportunity for investment in environmentally friendly technologies and practices that could reshape market dynamics.

Where it sits in our coverage

Our consensus target for the emerging FX landscape sits at 1.075, with a range between 1.04 and 1.12. Notable firms include: - jpmorgan: 1.10 (Mar26) - bofa: 1.04 (Mar26)

This perspective aligns closely with jpmorgan, reflecting a focus on corporate climate commitment as a driver of economic stability—positioning itself at the upper bound of the consensus spread.

How other firms see it

Group aligned firms like jpmorgan are echoing a bullish sentiment towards climate-focused investments, as evidenced in their targets. Conversely, firms like bofa present a more cautious stance, questioning the sustainability of current commitments given cost barriers.

In addition, this thesis resonates with broader trends in sustainable investment in sectors such as renewable energy and technology—a domain where notable central bank policies could have spillover effects on currencies as they grapple with the evolving economic landscape.

What the calendar says

Currently, there are no high-impact events on the calendar that directly intersect with these themes, but traders should remain vigilant for any announcements related to climate policies that may arise unexpectedly, impacting investor sentiment and market flows.

RBC Royal Bank View Online Dear Brian 2,000 consumers. 150 executives. 65 experts. A whole lot of insights. Canadians care deeply about the environment, businesses are embracing low-emission practices and technologies, but climate experts say much more needs to be done.

Three RBC surveys—with consumers, businesses, and climate experts—as part of our annual Climate Action Report that tracks Canada’s progress, offer insights into how respondents are addressing climate change. Some key takeaways: - Cost and affordability are the top barriers to climate-friendly action. Three quarters (74%) of Canadians cited it as the biggest challenge, followed by limited availability of options.

A quarter of Canadians doubt individual actions matter. For more, read the Consumer Pulse Check . - Few executives were hindered by uncertain climate policy. Fewer than 20% cited political dynamics in North America as reasons to scale back their climate commitments, suggesting strong commitment to climate action despite geopolitical and trade uncertainty.

For more read the Business Pulse Check . - Four in 10 experts expect only about 50-70% of announced federal climate funding to be fully deployed. Funding programs rank second last among federal policy tools. For more, read the Government Pulse Check .

Stay tuned for the full report, which is out next week. We encourage you to share this message with your network and ask them to join our mailing list to get in-depth research on the big ideas that can drive Canada’s economic prosperity. - Please do not respond to this email as this inbox is not monitored. You received this email because you subscribed to RBC Thought Leadership.

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