Last week was a short one for financial markets in Canada and the US. This week will bring some relatively big economic announcements out of Canada, which will give more insight into the health of Canada’s economy in the second quarter of 2026. Last week, the US decided against extending the Canada-United States-Mexico Agreement, meaning the trade agreement will be up for review annually. North American trade will carry on with ongoing uncertainty. Here’s what to watch for this week.

• Canada’s trade balance will be released on Tuesday. Canada’s economy ran a second consecutive trade surplus in April in response to a rise in exports.
• Canada’s labour market report for June will be announced on Friday. In May, job growth rebounded with the economy adding 87,800 jobs. Canada’s unemployment rate dropped to 6.6% in May, its lowest level since January 2026.
• The US Federal Reserve Board (Fed) will release the minutes from its June meeting on Wednesday. Investors will search for signals on how the Fed may adjust monetary policy this year.
• Around the world, European producer prices will be released today, UK home prices on Tuesday, China’s inflation rate on Wednesday and Germany’s trade balance on Thursday.
• Notable earnings in Canada include Aritzia and MTY Food Group. Key earnings in the US include PepsiCo and Delta Air Lines.

After a strong reading of Canada’s gross domestic product in April, markets will carefully monitor the labour market report to see if conditions are picking up in that area of the economy. Job growth in Canada had been muted in 2026 before the large increase in May. Markets are hoping May’s results are the start of a steadying labour market. This will all factor into the Bank of Canada’s upcoming interest rate decisions.

If you would like to discuss this economic and market update or have questions about your finances and investments, please feel free to contact me anytime.