Trade data will the highlight of the day for both the U.S. and Canadian economies. The U.S. trade balance will be the subject of scrutiny as the deficit is expected to continue to mushroom despite growing exports. The Canadian trade balance for June is also forecast to rise in the face of a slowing economy.

At 7:45 a.m. EDT ICSC will release U.S. chain store sales for the week ending August 9. In the previous week, sales rose 2.9% year-over-year.

At 8:30 a.m. EDT, Statistics Canada will release the international merchandise trade balance for June. Economists expect it to widen to C$5.8 billion in June, compared to May's C$5.5 billion level.

At 8:30 a.m. EDT, the U.S. Commerce Department will release the U.S. trade balance for June. The consensus expects a widening of the deficit from $59.8 billion in May to $62.0 billion in June.

At 8:55 a.m. EDT Redbook will release U.S. china store sales for the week ending August 9. In the previous week, sales rose 2.9% year-over-year.

At 10 a.m. EDT, the U.S. Labor Department will release their job openings and labour turnover survey for June. In May, job openings advanced 2.6% month-over-month.

At 10 a.m. EDT, Investors Business Daily and the Technometrica Institute will release their U.S. economic optimism index for August, which is expected to improve to a reading of 39.0 from 37.4 in July.

At 10:30 a.m. EDT, Minneapolis Federal Reserve President Gary Stern will be interviewed on CNBC.

At 1 p.m. EDT, the U.S. Treasury will sell $26 billion in 155-day bills.

At 2 p.m. EDT, the U.S. Treasury will release their monthly budget statement for July which is expected to total -$90 billion compared to the previous -$36.4 billion level.

At 5 p.m. EDT ABC will release their weekly consumer comfort index. In the week ending August 3, the index was -41.

7:45 US ICSC Chain Store Sales W/E Aug 9 Prior: +2.9%

8:30 CA International Merchandise Trade June Exp: C$5.8B Prior: C$5.5B

8:30 US Trade Balance June Exp: -$62.0B Prior: -$59.8B

8:55 US Redbook Retail Sales W/E Aug 9 (Y/Y) Prior: +3.5%

10:00 US Job Openings and Labour Turnover June

10:00 US IBD/TIPP Economic Optimism August Exp: +39 Prior: +37.4

11:30 US Treasury to Sell $26B in 155-Day Cash Management Bills

11:30 US DOE Short-Term Crude Outlook August Prior: +133K

11:30 US DOE Short-Term Ht Oil Outlook August Prior: +4.42K

11:30 US DOE Short-Term Diesel Outlook August Prior: +4.48K

13:00 US Treasury to Sell $28B in 4-Week Bills

14:00 US Monthly Budget Statement July Exp: -$90.0 Prior: -$36.4B

17:00 US ABC Consumer Confidence 10-Aug Prior: -49

August 12 US DOE Short-Term Mogas Outlook August Prior: 4.06K

August 12 US DOE Short-Term Nat Gas Outlook August

By Steve Stecyk and edited by Megan Ainscow