No key economic data is scheduled for release this week in Canada so investors will likely focus on interest rates and second quarter earnings from Canadian banks.

The consensus among economists is that the Bank of Canada will increase the overnight target bank rate to 4.25% from 4%.

On Monday, Canadian markets are closed for the Victoria Day holiday.

On Tuesday, the Organization for Economic Co-operation and Development releases its economic outlook for major world economies, in Paris.

On Wednesday, Statistics Canada releases leading indicators data for April. Economists expect a rise of 0.4%, compared with 0.6% a month ago.

South of the border

On Wednesday, the U.S. Commerce Department releases data on durable goods orders for April. Economists expect a decline of 0.5%, compared with a revised gain of 6.5% a month ago.

Separately, Commerce reports on new home sales for April. Economists expect annualized sales of 1,150,000 units, compared with 1,213,000 a month ago.

On Thursday, the U.S. Commerce Department issues preliminary figures on first-quarter gross domestic product. Economists expect an annualized rise of 5.8%, compared with a rise of 4.8% a month ago.

Meanwhile, the U.S. Labour Department reports on initial jobless claims for the week ended May 20. Economists forecast 315,000 new claims, compared with 367,000 a week ago.

Also Thursday, the U.S. National Association of Realtors posts existing home sales data for April. Economists forecast annualized sales of 6.79 million units, compared with 6.92 million a month ago.

On Friday, the U.S. Commerce Department releases personal income and consumption data. Economists forecast increases of 0.7% in income and 0.6% in spending.

Meanwhile, the University of Michigan issues its preliminary index of consumer sentiment in May. Economists expect a reading of 79.5, up from 79 a month earlier.

Corporate earnings

Bank earnings season kicks off this week with second-quarter profit reports. Bank of Montreal reports Wednesday, Toronto-Dominion Bank and National Bank of Canada on Thursday, and Royal Bank of Canada on Friday.

Other companies releasing earnings this week include: Zarlink Semiconductor Inc.; Royal Group Technologies.