We summarize this week Existing Home Sales in the US and Retail Sales in the UK are the major events this day. Here is an outlook on the market-movers awaiting us.

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, National Association of Home Builders (NAHB) Housing Market Index is expected to rise by 1 point up to 21 points on this monthly survey.

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?

In the US, Existing Home Sales, monthly indicator to value the sold uptown houses over the last month (without new building), reduced is forecasted from 4.91M on October down to 4.82M now.

Last week, manufacturing sales jumped by 2.6%, well above the 1.1% rise expected and inflation grew more than predicted with CPI rising 0.2% and Core CPI increasing by 0.3%. However foreign securities purchases dropped more than anticipated to 7.35 billion after an encouraging figure of 8.22 billion in the previous month. Let’s see what awaits us this week.

In the US, Unemployment Claims, value the persons that on the first time filed for unemployment insurance over the passing week, rise of 1K is expected up to 405K.

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.

Update: USD/CAD at 2011 high after Bernanke – the disappointing statement sent the pair well above parity. Watch the next levels above.