LONDON, Jan 23 Reuters The euro hit a ninemonth peak against the dollar on Monday as comments on European interest rates signalling additional jumbo rate rises contrasted with market pricing for a less aggressive Federal Reserve.

The euro reached as high as 1.0927 , breaking the recent peak of 1.08875, to trade at its highest level since April last year.

It was aided by European Central Bank ECB governing council member Klaas Knot, who said interest rates would rise by 50 basis points in both February and March and continue climbing in the months after.

A Reuters survey of analysts also favoured a hike of 50 basis points in March and an eventual top of 3.25 from the current rate of 2.

The euro is also being supported by an easing of recession fears amid a fall in natural gas prices, according to Rabobank head of currency strategy Jane Foley.

The growth in confidence in the economic outlook, or at least the removal of a lot of the pessimism, is part of the euro story, Foley said.

Layered on top of that, it looks as if the ECB are going to carry on hiking interest rates fairly aggressively, Foley added.

In contrast, futures have priced out almost any chance the Fed could move by 50 basis points next month and have steadily lowered the likely peak for rates to 4.75 to 5.0, from the current 4.25 to 4.50.

Investors also have around 50 basis points of U.S. rate cuts priced in for the second half of the year, reflecting softer data on inflation, consumer spending and…