Investors will be paying close attention to U.S. Federal Reserve Board’s statement this Wednesday for signs whether a pause in the rate hikes is on the horizon.

The Fed is widely expected to raise the federal funds rate for the 16th consecutive time, boosting the rate to 5% from 4.75%.

However, rate watchers are split on whether there will be another increase in June.

It’s a quiet week for economic news in Canada

On Monday, Canada Mortgage and Housing Corp. releases housing starts data for April. Economists forecast an annual rate of 230,000, down from 252.3,000 a month earlier.

On Wednesday, StatsCan releases new housing price index figures for March. Economists forecast a 0.6% increase from a month ago.

On Friday, Statistics Canada releases data on Canadian international merchandise trade for February. Economists forecast a surplus of $6.2billion.

South of the border

On Tuesday, the U.S. Commerce Department reports wholesale inventories for March. Economists expect a gain of 0.5%, compared with a gain of 0.8% a month ago.

On Wednesday, the U.S. Commerce Department reports on business inventories for March. Economists forecast a gain of 0.4%.

Meanwhile, U.S. Federal Reserve open market committee holds meeting and issues policy statement on interest rates.

On Thursday, the U.S. Department of Commerce reports retail sales data for April. Economists expect an increase of 0.6%, as in the previous month.

Separately, the U.S. Labor Department’s initial jobless claims for the week of May 6 are expected to come in at 315,000, down from 322,000 a week ago.

As well, Commerce issues business inventories data for March. Economists forecast a 0.4% rise.

On Friday, the University of Michigan issues its preliminary index of consumer sentiment in May. Economists expect a reading of 86.5, down from 87.4 a month earlier.

Meanwhile, the U.S. Commerce Department releases trade balance figures for March. Economists forecast a goods and services trade deficit of US$67 billion, compared with a deficit of US$65.7 billion a month ago.

Overseas, the European Commission releases spring economic forecast for the euro zone on Monday.


The Bank of England inflation report is released on Wednesday.

Earnings

Among the major Canadian companies scheduled to report first-quarter results this week are George Weston Ltd. and Talisman Energy Inc., tomorrow; Quebecor World Inc. and GMP Capital Trust on Wednesday; and Quebecor Inc., Power Corp. of Canada and Canadian Tire Corp. Ltd. on Thursday.