The Canadian employment report kicks off Friday's events followed by the release of the new housing price index and international securities transactions for May, as U.S. markets prepare for the trade balance, import prices index and the preliminary Michigan sentiment report for July.

At 7 a.m. EDT, Statistics Canada will release the Canadian employment report for June. Economists are expecting a build of 8.0k jobs in the Canadian economy compared to the previous month's 8.4k increase. The unemployment rate is expected to remain unchanged at 6.1%.

At 8:30 a.m. EDT, Statistics Canada will release the international merchandise trade balance for May. The consensus is expecting the balance to widen to C$5.3 billion from the previous month's C$5.1 billion level.

At 8:30 a.m. EDT, Statistics Canada will release the new housing price index for May, which is expected to have expanded by 0.1% month-over-month following a flat reading in April.

At 8:30 a.m. EDT, the U.S. Department of Commerce will release the trade balance for May, which is expected to have gone further into deficit at -$62.5 billion from April's -$60.9 billion level.

At 8:30 a.m. EDT, the U.S. Bureau of Labor Statistics will release the import price index for June. The consensus is expecting a 2.0% increase in overall import prices following a 2.3% increase in May. Annual import prices are expected to rise 18.6% after picking up 17.8% in May.

At 10 a.m. EDT, markets will receive the preliminary Reuters & University of Michigan consumer sentiment index for July. The headline index is expected to decline to a reading of 55.5 from June's final 56.4 level.

At 2 p.m. EDT, the U.S. Treasury will release the monthly budget statement for June, which is expected to come in at $30.0 billion compared to the previous month's $27.5 billion level.

7:00 CA Unemployment Rate June Exp: 6.1% Prior: 6.1%

7:00 CA Net Change in Employment June Exp: +8.0k Prior: +8.4k

8:30 CA International Merchandise Trade May Exp: +C$5.3 Prior: +C$5.1

8:30 CA New Housing Price Index (M/M) May Exp: +0.1% Prior: 0.0%

8:30 US Trade Balance May Exp: -$62.5B Prior: -$60.9B

8:30 US Import Price Index (M/M) June Exp: +2.0% Prior: +2.3%

8:30 US Import Price Index (Y/Y) June Exp: +18.6% Prior: +17.8%

10:00 US University of Michigan Confidence July Preliminary Exp: +55.5 Prior: +56.4

14:00 US Monthly Budget Statement June Exp: +$30.0B Prior: +$27.5B

By Erik Kevin Franco and edited by Stephen Huebl