Although corporate news and geopolitical tension has been dictating the trade recently, there is a full slate economic announcements due out next week for data watchers.

On Monday, housing starts numbers are out in Canada. This will be followed by capacity utilization numbers on Tuesday.

Friday will likely be the big day, with the Consumer Price Index due to be released. The report will have economists debating whether the Bank of Canada’s next move is a 25 basis point rate hike, or a 50 bps increase.

“With the Bank of Canada in a tightening mode, the CPI is likely to catch the most notice. That’s particularly true since the Bank indicated some discomfort with the upward surprises in its core rate of late, which stands at 2.2%,” says CIBC World Markets. “We look for that to ease off one tick in May, accompanied by a much larger downshift in the overall CPI as a big number in May 2001 drops out of the 12-month rate. None of this will bear on the Bank’s likely move to raise rates again in July, but softer readings might see the market ease off on expectations for the extent of further hikes this year.”

BMO Nesbitt Burns agrees that the CPI could be lighter due to lower gas prices. However, “The year-over-year core inflation rate is expected to remain stuck above the Bank’s 2% target for the fourth month in a row, holding steady at 2.2%. While this is not much different from last year’s 2.1% average, there is bound to be some discomfort at the Bank of Canada that core inflation did not budge lower in the wake of last year’s economic slowdown.”

In the U.S., the first bit of data out next week is Wednesday’s Beige Book from the Fed. “The Beige Book has been downbeat all year,” notes BMO Nesbitt Burns. “The Fed is relying on this type of information as a key underpinning of their decision to hold rates steady at a low level. No change has been heard in the tone of Fedspeak of late. So, the Beige Book will likely suggest only the barest hint of an economic pickup and continue to report no pricing power.”

On Thursday, U.S. retail trade numbers are out, as is the Producer Price Index. “Retail sales looked anemic in May, particularly including a retreat in autos,” says CIBC World Markets.

On Friday, U.S. industrial production and capacity utilization numbers are due. CIBC World Markets says that, “tame hours worked and cool weather that held back utilities demand also point to some disappointments in industrial production.”

“With PPI remaining tame, the data should generally be favorable for Treasuries and bearish for the U.S. dollar, but equity earnings concerns might continue to tell the tale,” predicts CIBC. BMO Nesbitt Burns agrees, noting, “U.S. economic news is likely to take a back seat to the unfolding drama in the stock market again in the coming week.”