This week’s economic schedule looks like a terrier — short and busy. With an announcement on interest rates in Canada and a glut of economic data in the United States, traders will have their hands full in a holiday-shortened week.

U.S. markets have the day off on Monday for Memorial Day. Canadian markets will be quiet with Wall Street on vacation.

On Tuesday the real fireworks begin. The Bank of Canada is set for a rate decision at 09:00 ET. Opinion is split between a 25 basis point cut and a 50 bps move, although the consensus is sliding toward a 25 point move.

CIBC World Markets says, “With the economy still churning out a surprising number of new jobs and a consumer price spike fresh in their minds, Dodge and company will likely opt for another conservative dose of monetary easing, chopping rates just 25 bps on Tuesday.” BMO Nesbitt Burns, TD Bank and RBC DS all appear to agree.

Tuesday will also see the release of personal income and spending numbers in the U.S., followed by the all-important consumer confidence reading. In Canada, we’ll get industrial price data for April.

After all the action on Tuesday, markets get a breather on Wednesday, but Thursday brings first quarter GDP numbers and current account data in Canada. “Thursday’s GDP results, relying on a new chain-weighted methodology, should reveal a modest pick-up in growth. But if, as we expect, the business investment and inventory picture continues to sour, the Bank of Canada could soon be re-evaluating their restrained rate-cutting approach,” says CIBC.

On Friday, the jobs report is out in the U.S. Many traders on keying on this for both a prognosis on the U.S. economy and a clue on the direction of interest rates. CIBC World Markets says, “A third straight drop would provide the most compelling sign yet that the economy is in outright recession.”

The market is expecting a weak report. In fact it is so keyed to expect weakness that BMO Nesbitt Burns fears a strong report, noting, “Our concern is that the roll of the statistical dice might turn up a stronger-than-expected number that would create ‘Fed nearly finished easing’ stories in the market. We don’t believe the Fed would view one month’s jobs data as proof of a trend, especially in light of all the weak labour market news that is available.”

The National Association of Purchasing Managers index is also out on Friday. BMO Nesbitt again expresses caution, noting, “Potentially dangerous, the NAPM also deserves a close look. Many in the markets would think that an upswing in NAPM is an indicator that the economy is about to bounce back and, accordingly, that the Fed will stop easing. The winding down of the basic-industry inventory correction could produce a pop in NAPM.”

As if all the economic data wasn’t enough, they’ll also be some action on the earnings front. Royal Host REIT is slated to report Monday. On Tuesday, Bank of Nova Scotia and CIBC are due to report. Wednesday will see Laurentian Bank, Cara Operations Ltd. and Van Houtte Inc. reporting their results. National Bank rounds out the banks’ reporting on Thursday.

In the U.S., it will be a mercifully slow week for earnings, according to First Call. “There will be a few earnings reports that will shed some light on the outlook for the retailing and homebuilding,” says First Call. “Toll Brothers on Tuesday, Hovnanian Enterprises on Wednesday and Costco Wholesale on Thursday.”