A growing body of contrarians has a warning for the market majority betting on a continued euro rally: the energy crisis that sent the common currency tumbling last year is far from over.
Investors and analysts at Vanguard Group Inc. and BlueBay Asset Management LLP argue that high gas prices will continue to put pressure on the euro-area trade balance. Others forecast that the currency could fall back toward parity with the dollar from $1.10 currently. The bloc is a net energy importer and natural gas accounts for a quarter of its power mix.
