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:

Last week, Gross Domestic Product edged down 0.1% in November following no growth in October. This is the first decline since May 2011 which was contrary to economists expectations of 0.2% expansion. The main drops occurred in the energy sector with oil and gas sliding 2.5% but the manufacturing sector increased 0.6% on durable goods. Employment data were weak with a rise in the unemployment rate, but the excellent job figures from the US provided lots of hope. Will we see better results next month?

Ben Bernake’s extended rate pledge and hints of QE3 certainly helped weaken the US dollar. In Canada, the leading index continued rising with a 0.8% gain in December after climbing 0.9% in the previous month suggesting positive growth. Retail sales gained 0.3% in October supporting predictions while Core sales topped expectations with 0.3% climb. Will the Canadian market continue its growth this week?

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?

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 ?

Last week, Ivey PMI figures increased unexpectedly to 63.5 from 59.9 in the previous month suggesting expansion in the industrial sector. However employment data disappointed with higher unemployment rate of 7.5% from 7.4% in the prior month and a bit lower than expected job increase of 17,500 while 17,800 was predicted. Let’s see what this week has in store for us.

Tensions around Iran’s military exercise in the straights of Hormuz keep oil prices from falling, and this supports the greenback. Mid-east violence could start in another region, between Syria, Lebanon and Israel. These themes will continue in 2012.

Canadian GDP disappointed by remaining unchanged in October, the first month of Q4. On the other hand, fresh retail sales figures came out better than expected, providing hope.

Last week BOC Governor Mark Carney made a speech in Toronto asking businesses to boost investments and enter emerging markets. He also recommended on Canada’s relatively healthy economic situation compared to the debt-fuelled foreign markets. Canadian consumers should restrain their debts while businesses should invest in enhancing productivity in the market. Will Canadian growth process continue?

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?