Frankfurt (Germany), March 13 (.).- The euro rose this Monday and traded above 1.07 dollars, the highest value for a month, because the markets discount that the Federal Reserve (Fed) will raise the next week your interest rates only by a quarter point or you won’t raise them at all.

The euro was trading around 4:00 p.m. GMT at $1.0717, compared with $1.0695 in the final hours of European currency market trading the previous day.

The European Central Bank (ECB) set the reference exchange rate for the euro at $1.0706.

“The path of the Fed is drastically reconsidered, weighing on the dollar,” after the bankruptcy of Silicon Valley Bank (SVB), which specialized in financing emerging companies, commented Monex Europe analysts.

Markets now expect the Fed to raise interest rates next week by at most a quarter point or not at all.

Traders are virtually ruling out the option of the Fed raising interest rates by 50 basis points and have tempered expectations for this bullish cycle.

For this reason, and despite the intervention of the United States Government to stabilize the banking system and prevent deposit leaks, the profitability of the United States Treasury debt falls and the dollar depreciates.

Despite the fear of contagion as occurred in 2008 after the bankruptcy of Lehman Brothers, which is reflected in the sharp falls of European banks on the stock market this Monday, analysts expect the ECB to increase its interest rates by half a percentage point on Thursday , up to 3.5%, as you have indicated for some time.

The deposit facility, through which the ECB remunerates overnight deposits, would then remain at 3%.

“While we expect an upward revision to the core inflation profile to support the prospect of a further 50 basis point rise in May, recent financial stability concerns may prompt a level of caution among the Governing Council.” of the ECB, adds Monex Europe.

The single currency was exchanged in a fluctuation band between 1.0651 and 1.0737 dollars.