07:29 AM EST, 01/07/2025 (MT Newswires) -- The Canadian dollar (CAD or loonie) is holding onto Monday's gains at C$1.431 following Prime Minister Justin Trudeau's resignation announcement, noted Bank of Montreal (BMO).

With parliament suspended until March 24 and the Liberal Party tasked with finding a new leader, Canadians could be headed to the polls in the spring, said the bank.

On the data docket at 8:30 a.m. ET Tuesday, Canada's goods trade deficit is expected to widen modestly to C$1.0 billion in November on lower energy prices, stated BMO. It will widen much more if exporters get slapped with 25% US tariffs in a couple of weeks.

The US trade deficit likely rose modestly to C$78.4 billion in November given the earlier-reported increase in the goods shortfall. This would be larger than the average gap for the year and extend a rising trend since mid-2023 that won't win applause from the new administration of Donald Trump.

Greater Toronto Area (GTA) existing home sales plunged 18.7% seasonally adjusted in December after four straight monthly increases, while benchmark prices rose for a second month in a row, by 0.4%, pointed out the bank. Prices are up slightly from a year ago, with gains in detached homes contrasting with a 3.7% decline in the saturated condo market.

The report supports BMO's view that the housing market, though likely to recover this year, will be held back by the lack of affordability in places like the GTA.