The economic data calendar offers thin gruel to market watchers this week, with a very sparse slate of news.

In Canada, RBC Capital Markets notes that this week, “opens up with the release of December building permits followed by January housing starts on Tuesday. The most important release comes on Thursday when the highly volatile international merchandise trade numbers for December come out.”

We may see housing starts drop more than 6% to 222,000, predicts BMO Nesbitt Burns. A reading that, Nesbitt says, “would likely cause a few worrywarts to muse that Canada was heading toward a recession.”

But, it isn’t worried. “Yes, activity in the home construction industry is slowing, but from very heady levels. However, interest rates are still very low and domestic demand remains solid, which should prevent a sharp slowdown in the housing industry,” it says. “Building permits for December will likely be a warning shot before the starts number.”

CIBC World Markets says that “mortgage rates have remained low enough to keep the housing market running in high gear, but home building isn’t going to be a source of additional growth” in the future.

Turning to the trade numbers, CIBC says that the trade picture, “should see a temporary improvement as real exports are lifted by brisk U.S. vehicle sales and industrial production. But any lift to the Canadian dollar will be dampened if, as we expect, the U.S. dollar gets some support globally from better American trade figures.”

“The Canadian trade number in any particular month is a crapshoot,” Nesbitt notes, “as the headline is subject to significant revisions.” It says that, “A trade surplus edging toward $6.0 billion is possible, but take any headline with a big grain of salt.”

In the U.S. this week, the only data releases of significance, RBC says, come on Thursday when international trade numbers come out alongside initial jobless claims. Also, there’s a G7 meeting over the weekend, and a speech from Federal Reserve Board chief Alan Greenspan is slated for Sunday.

“With the G-7 not likely to produce any fireworks, it will be data rather than words about America’s trade position that will move markets,” CIBC says. “While we’re bearish on the US dollar over the next few quarters, this week’s deficit figures could show enough improvement to spark a bit of dollar buying. Jobless claims could attract a look, after a drop last week that once again raised hopes for improved hiring,” it adds.

Nesbitt says that December’s trade deficit is expected to come in at $57.0 billion, down from November’s record of $60.3 billion, a peak which will likely be revised down.

On the earnings front, there’s a decent lineup of news due out. Lafarge reports on Monday. Alcan, Cascades, Cisco, Fortis, MDSI and Toromont report Tuesday.

On Wednesday, 724 Solutions, AIG, ATS, Boliden, Canfor, Inmet, Lions Gate and Loblaws are on the schedule.

Agrium, Aur Resources, Brookfield, Canadian Tire, CP Ships, Enerflex, Fairfax Financial, Kingsway Financial, Niko Resources, Precision Drilling, Shoppers Drug Mart, Thomson, and Trizec, all report on Thursday.

CAE and Emera are the only reports on deck for Frday.