All eyes will be on the U.S. Federal Reserve this week when it meets to consider whether to increase the federal funds rate for the 18th consecutive time by one-quarter of a percentage point to 5.5%.

In Canada, markets are closed Monday for the Civic holiday.

On Tuesday, Statistics Canada releases building permit data for June.

On Wednesday, Canada Mortgage and Housing Corp. releases housing starts data for July. Economists expect annualized starts of 225,000.

On Thursday, Statistics Canada releases the new housing price index for June. Economists forecast a 1% increase from May.

Separately, StatsCan also issues international merchandise trade data for June. A surplus of $4.2 billion is expected, compared with $4.1 billion in May.

South of the border

On Tuesday, the Fed’s policy-making committee holds a meeting on interest rates and then issues its decision.

On Thursday, the U.S. Commerce Department releases international trade figures for June. Economists forecast a trade deficit of US$64.5 billion, compared with a $63.8 billion deficit in May.

Separately, the U.S. Department of Labor reports on jobless claims for the week ended Aug. 5. Economists expect 314,000 initial claims.

On Friday, the U.S. Commerce Department releases for retail sales figures for July. Economists forecast an increase of 0.8%.

Commerce also issues business inventories data for June. A 0.5% rise is expected.

Corporate earnings

Canadian and U.S. companies reporting quarterly earnings this week include: Magna International Inc.; Cisco Systems Inc.; Lions Gate Entertainment Corp.; Yellow Pages Income Fund; Ivanhoe Energy Inc.; *American International Group; Walt Disney Co. results.; Stelco Inc.; CAE Inc.; Canadian Tire Corp. Ltd.; Four Seasons Hotels Inc.; Goldcorp Inc.; Metro Inc.; Cinram International Income Fund; Target Corp.; GMP Capital Income Trust; Alliance Atlantis Communications Inc.; and Northgate Minerals Corp.