The Bank of Canada is widely expected to increase the target overnight bank rate Tuesday. However, with the Canadian dollar continuing to climb it could be the last increase for a while.

Most analysts expect the central bank to raise the target rate by one-quarter of a percentage point to 3.75%.

In addition to the Bank of Canada’s rate decision, other key domestic data scheduled for release this week include the merchandise trade balance on Thursday and the February employment report on Friday.

On Monday, Statistics Canada releases building permit data for January. Economists expect a decline of 18% from December.

Also Monday, the Ivey Purchasing Managers Index is released. A reading of 58.2 is expected.

On Wednesday, Canada Mortgage and Housing Corp. releases housing starts for February. Economists forecast an annual rate of 231,000.

On Thursday, Statistics Canada will report on Canada’s international merchandise trade surplus. Analysts expect a surplus of $7.4 billion.

Separately, StatsCan releases its new-housing price index for January. Economists predict a rise of 0.5% from December.

On Friday, Statistics Canada releases the labour force survey for February as well as fourth-quarter labour productivity data.


The key U.S. data scheduled for release this week include factory orders and home sales Monday, the trade balance on Thursday and the employment report on Friday.

On Monday, The U.S. Commerce Department reports on factory orders for January. Economists forecast a 5.5% decline from a year earlier.

On Tuesday, the U.S. Labor Department issues two revised reports for the fourth quarter: Economists forecast a 0.1% decline in productivity; and, a 3% rise in unit labour costs.

On Thursday, the U.S. Commerce Department reveals the American trade balance. A deficit of US$66.7 billion is forecast.

Meanwhile, the U.S. Labor Department will report on initial jobless claims were made last week.

On Friday, the U.S. Labor Department releases its employment report for February

Separately, the U.S. Commerce Department will report wholesale inventories for January.

In corporate news, Canadian Western Bank, Goldcorp Inc., Alimentation Couche-Tard Inc., Imax Corp., and Four Seasons Hotels Inc. are among the companies slated to release earnings.