Last week positive readings were released with surprisingly elevated reading for the Canadian Ivey Purchasing Managers Index (PMI) rising to 64.1 from63.5 in December suggesting a major improvement in the market’s future activity and better than expected housing data with a boost of 11.1% in the Canadian building permits, highest jump since June 2007. Is Canada on a strong recovery path? Let’s Start:

In the US, Empire State Manufacturing Index, monthly survey to value the general business conditions, rise is predicted from 9.5 points on December up to 10.7 now.

Last week, positive housing data with new housing starts increasing unexpectedly to 200,200 units in December from 186,000 inthe previous month with a rise in multiple urban starts. Meantime new housing price index also increased above predictions gaining 0.3%. However the total value of building permits dropped by 3.6%, mostly inOntario. Will the housing sector continue to thrive ?

In the US, Consumer Price Index (CPI), measures some goods and services average prices, about to rise up from November by 0.2% to 0.1% this time. And similar rise is expected in the Core CPI (not including energy & food), up to 0.2% from 0.1% on November.

Last week the Bank of Canada members left the interest rate unchanged at 1% confident in the current market situation but worried about possible downside risks from the European continent. Ivey PMI jumped in October to 59.9 after dropping to54.4 in September indicating improvement in the Canadian economy. WillCanada be able to avoid the harsh impact of the European debt crisis?

In the US, Unemployment Claims, weekly report to value the persons that filed for joblessness insurance, rise is predicted from 390K up to 396K.

Last week, Canadian dollar dropped due to growing demand for U.S. currency following Italy’s bond turmoil, but this reversed. Housing starts increased more than anticipated reaching 208,000 from 192,000 in August and new housing price index climbed 0.2% in line with predictions. Will the EU turmoil affect growth in the Canadian market?

In the US, Charles Evans, Federal Reserve Bank of Chicago President, is due to lecture in Detroit.

Last week a positive week for the Canadian economy with a better than expected rise in housing starts reaching 206,000 from 192,000 in the previous month and well above predictions of 187,000 units. Furthermore, trade balance deficit increased less than predicted to 0.6N from 0.5B in the previous month while a bigger gap of -0.9b was predicted signaling stability in the Canadian market.

In the US, Prelim University of Michigan (UoM) Consumer Sentiment, Survey (around 500 consumers) to value the present and upcoming financial conditions, expected to rise from 55.7 points on August to 56.4 points this time. Meanwhile the Prelim UoM Inflation Expectations is forecasted to remain 3.5%, similar to August report.