The Bank of Canada makes its interest rate announcement Tuesday morning before markets open. Economists forecast the target for the key overnight rate to rise to 4.5%, up from 4.25%.

Also Tuesday, Canada Mortgage and Housing Corp. reports on housing starts in June. Economists forecast 215,000 starts on an annualized basis, compared with 229,700 a month earlier.

On Wednesday, the Conference Board of Canada releases its latest economic forecast, Canadian Outlook – Summer 2007.

On Thursday, Statistics Canada posts the new housing price index for May. A rise of 0.5% is expected, after a gain of 0.8% a month earlier.

Separately, StatsCan issues international merchandise trade data for May. A surplus of $5.5 billion is expected, following a surplus of $5.8 billion a month earlier.

On Friday, the Bank of Canada releases its monetary policy update.

South of the border

On Tuesday, the U.S. Commerce Department reports wholesale inventories for May. Economists expect a gain of 0.4% from the previous month.

On Thursday, Commerce reports on the trade balance for May. Economists expect a deficit of US$60 billion, up from a deficit of $58.5 billion a month earlier.

Meanwhile, the U.S. Labor Department reports on initial jobless claims for the week ended July 7. Economists forecast 315,000 new claims.

Corporate earnings

Companies expected to release quarterly results include:

  • Alcoa;
  • Corus Entertainment;
  • Yum Brands;
  • Astral Media;
  • CanWest Global Communications;
  • Nexen;
  • Shaw Communications; and
  • OPTI Canada.