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 Canada, Leading Index More in Canada, Monthly Index that is based on 10 monetary indicators; is about to decreases from 0.8% on December down to 0.6% now.

Strong figures were released last week with a surge in foreign securities purchases reaching C$14.99 billion while way above the C$6.97billion predicted and Manufacturing sales increased better than predicted by 2.0%. The BOC  released its monetary policy report announcing the bank predicts the Canadian economic recovery will continue “at a more modest pace” in light of the deepening crisis in the EU which will definitely affect the Canadian recovery unless contained by EU officials. Will the Canadian economy continue to expand?

In the US, Import Prices, value the prices for imported goods and services, affects the businesses and consumers inflation, about to rise up from -0.6% on November to 1.0% now.

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, Treasury Currency Report shows the worldwide exchange rate policies, financial conditions, and global government actions. Emphasize outlines reports.

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, Consumer Price Index (CPI), value the price of various goods and services on the last month, due to drop down by 0.1% to 0.3%. Meanwhile the Core CPI is likely to stay 0.2% similar to September.

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, Building Permits, excellent indicator for the upcoming construction activity, measures monthly permits issued for the new residential houses, stabilize on 0.60M. Meanwhile on the Housing Starts (new housing that began building) a small reduce is expected from 0.60M on August to 0.59M.