Paul Mendelson, chief investment strategist from Windham Financial services, said it will be a light week but markets will still have important data to focus on. He pointed out the 10-year note auction will be watched closely.

"Markets will want to see how much demand there will be for Treasuries at these yields," he said. "But in general it's not going to be as busy as last week."

Chris Low, chief economist from FTN Financial, said markets will focus on Monday's U.S. ISM services composite report.

"The highlight is likely to be the nonmanufacturing ISM, especially after the unexpected pop in service hiring in the April jobs report," he said. "Consensus forecast is for little change from 49.6 in March. We expect a decline to 45.0."

Paul Gardner, partner and portfolio manager at Avenue Investment Management, said Canadian markets will be watching the employment data, which he thinks will come in a little weaker than the consensus forecast of 12,500 jobs.

"Because the Canadian numbers have missed to the upside we are thinking that now we will start to see some declines," he said.

Either way, he added, the Canadian data won't have lasting impact on the markets, which are focused on what is happening globally and in the U.S.

"Once we get the knee jerk reaction following the data we will just go back to normal," he said. "In the end the data won't change much."

Andrew Gretzinger, portfolio manager from MFC Investments, said next week's data could have an impact on the Bank of Canada's monetary policy in June. He added markets will be paying close attention to employment and housing, looking for signs of weakness, which may cause the bank to continue to ease rates.

"Last week, Carney came out and said that more rates cuts might be likely and markets have started pricing in a 25 basis point cut in June," he said. "That 25 cut could become a 50 basis point cut pretty fast if the employment data is weaker than expected."

All times in EST

Monday:

U.S. ISM non-manufacturing composite for April will be released. The consensus is calling for a reading of 49.1 down from March's reading of 49.6

Fed Chairman Ben Bernanke will be in New York City to speak about mortgage foreclosures in the U.S.

10:00 US ISM Non-Manufacturing Composite April Exp: 49.1 Prior: 49.6

13:00 US Treasuries to Sell $22 B 3-Month Bills

13:00 US Treasuries to Sell $21 B 6-Month Bills

20:30 US Fed Chairman Bernanke Speaks About U.S. Mortgage Foreclosures

Tuesday:

Markets will focus on Canadian data with the release of March building permits and April's PMI index.

Economists expect Canadian building permits to rise 1.2% following a decline of 1.0% in February.

Canadian Ivey PMI is expected show a level of 55.0, down from March's reading of 59.0.

Kansas City Fed president Thomas Hoenig will be in Denver to speak about market risk and monetary policy.

8:30 CA Building Permits (Monthly) March Exp: +1.2% Prior: -1.0%

10:00 CA Ivey Purchasing Managers Index April Exp: 55 Prior: 59

6-May US DOE Short-Term Crude Outlook May Prior: +93K

6-May US DOE Short-Term Diesel Outlook May Prior: +3.39K

6-May US DOE Short-Term Ht Oil Outlook May Prior: +3.30K

13:00 US Treasuries to Sell 4-Week Bills

17:00 US ABC Consumer Confidence 4-May Prior: -41

21:30 US Fed's Hoenig Speaks in Denver on Market Risk and Policy

Wednesday:

The U.S. housing industry will be in the spotlight with the release of U.S. pending home sales for March. Economists are forecasting more weak data with a 1.0% decline following February's fall of 1.9%.

Fed governor Randall Kroszner will be in Cincinnati to speak about foreclosures.

7:00 US MBA Mortgage Applications 2-May Prior: -11.1%

8:30 US Nonfarm Productivity 1Q Preliminary Exp: +1.5% Prior: +1.9%

8:30 US Unit Labor Costs 1Q Preliminary Exp: +2.6% Prior: +2.6%

8:45 US Fed Governor Kroszner Speaks in Cincinnati on Foreclosures

10:00 US Pending Home Sales (Monthly) March Exp: -1.0% Prior: -1.9%

10:30 US DOE U.S. Crude Oil Inventories 2-May Prior: +3848K

10:30 US DOE U.S. Gasoline Inventories 2-May Prior: -1483

10:30 US DOE U.S. Distillate Inventory 2-May Prior: +1129

10:30 US DOE U.S. Refinery Utilization 2-May Prior: -0.22%

13:00 US Treasuries to Sell $15B 10-Year Notes

15:00 US Consumer Credit March Exp: $6.0B Prior: $5.2B

Thursday:

The focus is once again on Canada with the release of April housing starts, which are expected to come in at 225,000 units following March's revised starts of 243,000 units.

In the U.S., markets will receive March wholesale inventories, which are expected to rise 0.5% following a 1.1% rise in February.

Economists expect weekly U.S. jobless claims to fall back slightly, rising to 375,000 claims, down from last week's reading of 380,000.

8:15 CA Housing Starts April Exp: 225.0K Prior: 254.7K Revised: 243.0K

8:30 US Initial Jobless Claims 3-May Exp: +375K Prior: 380K

8:30 US Continuing Claims 26-Apr Exp: 3020K Prior: 3019K

10:00 US Wholesale Inventories March Exp: +0.5% Prior: +1.1%

10:30 US EIA Natural Gas Storage Change 2-May Prior: 86

12:30 US Former Fed Chairman Greenspan Speaks in New York

13:00 US Treasuries to Sell $6B 30-Year Bonds; Reopening

13:15 US Deputy Treasury Secretary Kimmitt Speaks on State Wealth Funds

13:30 US ICSC Chain Store Sales (Annualized April Prior: -0.5%

Friday:

The week ends with Canadian employment data, which is expected to show 12,500 jobs were created in April, following 14,600 jobs created in March. The unemployment rate is expected to hold at 6.0%.

March's U.S. trade balance data will be released, which is expected to show a deficit of $61.4 billion following February's deficit of $62.3 billion. North of the border, Canadian international merchandise trade is expected to show a surplus of C$4.5 billion, down from February's trade surplus of C$4.9 billion

7:00 CA Unemployment Rate April Exp: 6.0% Prior: 6.0%

7:00 CA Net Change in Employment April Exp: 12.5K Prior: 14.6K

8:30 US Trade Balance March Exp: -$61.4B Prior: -$62.3B

8:30 CA International Merchandise Trade March Exp: C$4.5B Prior: C$4.9B

By Neils Christensen, This email address is being protected from spam bots, you need Javascript enabled to view it , edited by Cristina Markham, This email address is being protected from spam bots, you need Javascript enabled to view it