The Canadian traders have found a way to deal with the interest rates even as the latest readings on housing starts, home prices and job creation continue to be the concern.

The U.S. employment data for February reflected a better than expected result last week, with an increase of 295,000 jobs for the month. At the same time, the data got many thinking that the Fed will hike rates soon enough, may be in June itself.

The Bank of Canada has maintained the rates after the quarter-point cut in January this year to prevent any further economic damage from dropping oil price, many financial analysts are expecting that the bank could cut again, sometime in April.

"We know that they are in data-watching mode," said Andrew Pyle, a portfolio manager at ScotiaMcLeod in Peterborough, Ontario.

"Next week is an important week because you have housing starts coming out. You have new home prices out. You have all these things, not to mention you have an employment report. I think there is a lot of direction for the TSX simply because it’s going to answer some questions on the Bank of Canada side."

The worst is not over yet:

Economists have predicted that the Canadian economy likely lost over 5,000 jobs in February, following a gain of 35,000 jobs just a month ago.

The major events of the week in the U.S. are the release of February retail sales data, while Economists expected a sales rise by 0.4 percent during the month after a 0.8 percent drop in January.

"It wasn't a great earnings season (but) it wasn't a disaster," said Pyle, who also said that bank earnings positively surprised the traders as four banks have beat estimates by economists.

"For a lot of people, it was like here we go again with another bad quarter and that wasn't the case."

Also read our other coverage around the same issue here.

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