A quiet week for U.S. economic data will turn market focus on any news regarding the U.S. financial sector. In Canada, the employment report will provide guidance to domestic markets.
The financial sector continues to drag U.S. equity markets lower, and according to some market strategists, investors will be looking to the U.S. government for more guidance on the banking sector.
"Until the problems in the banking sector are resolved risk aversion will remain in markets," said Jamie Coleman, FX strategist at ForexLive.com.
Colman is expecting currency markets to continue to track markets, adding that with stocks continuing to make new lows, the U.S. dollar will be well supported.
Conrad DeQuadros from RDQ Economics agreed that most of the focus next week will be on the U.S. government, and any new plans to support the banking sector.
The most important data this week appears to be U.S. retail sales, but DeQuadros said markets are already preparing for a weak report.
January's sales surprised to the upside, but he said he is not expecting that trend to last.
"January sales were a bit of an anomaly," he said. "The underlying trend remains to the downside despites last month's rise."
In Canada, markets will focus on the employment report, which is expected to show more sharp deterioration in the labour market.
Sacha Tihanyi, currency strategist from Scotia Capital said although the employment data will impact the Canadian dollar, markets will remain sensitive to global and U.S. trends.
He said if overall risk appetite is on the rise ahead of the report, it will be supportive of the Canadian dollar. If that is the case, traders might ignore the domestic data and continue following the trend, he said.
All times in EST:
Sunday
15:15 US Bernanke Speaks at Naming of Highway Interchange in S.C.
Monday
8:15 CA Housing Starts February Exp: +148.5K Prior: +153.5K
13:00 US Treasury to Sell $31B 3-Month Bills
13:00 US Treasury to Sell $30B 6-Month Bills
Tuesday
8:30 US Bernanke Speaks on Bank Regulation in Washington
10:00 US Wholesale Inventories January Exp: -1.0% Prior: -1.4%
10:00 US IBD/TIPP Economic Optimism March Prior: +44.6
11:30 US Treasury to Sell $24B 52-Week Bills
11:30 US Treasury to Sell 4-Week Bills
13:00 US Treasury to Sell $34B 3-Year Notes
17:00 US ABC Consumer Confidence W/E March 8 Exp: -49 Prior: -49
Wednesday
7:00 US MBA Mortgage Applications W/E March 6 Prior: -12.6%
8:30 CA New Housing Price Index (M/M) January Exp: -0.3% Prior: -0.1%
10:30 US DOE U.S. Crude Oil Inventories W/E March 6 Prior: -757K
10:30 US DOE U.S. Gasoline Inventories W/E March 6 Prior: +168K
10:30 US DOE U.S. Distillate Inventory W/E March 6 Prior: +1662K
10:30 US DOE U.S. Heat Oil Inventories W/E March 6 Prior: +870K
10:30 US DOE U.S. Refinery Utilization W/E March 6 Prior: +1.76%
13:00 US Treasury to Sell $18B 10-Year Notes Reopening
14:00 US Monthly Budget Statement February Exp: -$203.0 Prior: -$175.6B
Thursday
8:30 US Advance Retail Sales February Exp: -0.5% Prior: +1.0%
8:30 US Retail Sales Less Autos February Exp: -0.2% Prior: +0.9%
8:30 US Initial Jobless Claims W/E March 7 Exp: +640K Prior: +639K
8:30 US Continuing Claims W/E Feb. 28 Exp: +5130K Prior: +5106K
10:00 US Business Inventories January Exp: -1.1% Prior: -1.3%
10:30 US EIA Natural Gas Storage Change W/E March 6 Prior: -102 Bcf
13:00 US Teasury to Sell $11B 30-Year Bonds Reopening
Friday
7:00 CA Unemployment Rate February Exp: 7.4% Prior: 7.2%
7:00 CA Net Change in Employment February Exp: -50.0K Prior: -129.0K
8:30 CA International Merchandise Trade January Exp: -0.8B Prior: -0.5B
8:30 US Trade Balance January Exp: -$38.0B Prior: -$39.9B
8:30 US Import Price Index (M/M) February Exp: -0.8% Prior: -1.1%
8:30 US Import Price Index (Y/Y) February Exp: 13.5 Prior: -12.5%
10:00 US University of Michigan Consumer Sentiment March Preliminary Exp: +55.0 Prior: +56.3
By Neils Christensen and edited by Megan Ainscow
©CEP News Ltd. 2009