A weak euro should boost the eurozone as it makes Europe’s exports cheaper. But contrary to popular belief, says Société Générale’s Albert Edwards, the euro isn’t getting weaker. It is falling against the dollar, yes – but its overall performance is solid.
On a trade-weighted basis – measured against a basket of trading partners’ currencies – it has ticked up in the past two months. A strong currency is another reason to fear deflation in the eurozone.