Why the weaker euro is a mixed blessing

The euro's stubborn strength has been blamed for many of the eurozone's woes. Now ECB action has weakened the currency, will the result be all positive? Cornelian's David Appleton investigates.

The euro has weakened against a number of key currencies in the second half of this year, as the economic recovery has stalled, and the ECB has cut interest rates while announcing stimulatory measures designed to ease the flow of credit. The stubborn resilience of the single currency had often been cited as a key headwind constraining the European economic recovery, so should investors expect a significant turnaround in economic fortunes now the currency is weakened? Impact of currency weakness The economic impact of currency weakness, in theory, should be positive for trade. Europ...