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There are “clear signs” that the Canadian economy is on an upward cycle and, as a result, the loonie could reach as high as 90 cents against the U.S. dollar according to John Johnston, chief strategist with Davis Rea. In an interview with BNN, Johnston has said that the nation will see a greater demand for commodities over the next six to twelve months, which could send the loonie to a multi-year high.

This is news that should be especially welcome to many U.S. travel destinations, who have seen a decrease in Canadian travellers, many of whom have put off international travel plans over the past year, due to the decreased value of their currency.

If Johnston’s predictions come to pass, this will also be a welcome turnaround from earlier predictions this year, when analysts suggested the loonie might continue to tumble down into the neighborhood of 55 cents against the U.S. dollar.

Still, Johnston warns, the long-term forecast for the loonie is not so bright. He believes that the loonie will spend a couple years “bouncing around.” After that, Johnston predicts that the world is looking at a global recession, during which the loonie could drop to as low as 55 cents.

The dollar was valued at 76.65 cents US on Aug. 31, according to trading charts at Oanda.com. The high for 2016 was on June 9, when it reach 78.68 cents US.

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