US focus: Euro gains on optimism Greece to vote for budget cuts

The euro strengthened amid optimism Greece’s parliament will approve austerity measures required to help avert the currency bloc’s first sovereign default.
Greek lawmakers start debating today the five-year, 78 billion-euro ($111 billion) package of budget cuts and asset sales that officials say is needed to receive a loan payment and future financing from the European Union and the International Monetary Fund.
The shared currency was also supported as Chinese Premier Wen Jiabao said his country will keep investing in Europe’s sovereign bond market.
“China has actually increased the purchase of government bonds of some European countries, and we haven’t cut back on our euro holdings,” Wen told yesterday. These acts “show our confidence in the economies of Europe and the euro-zone,” he said.

The pound strengthened on speculation the Bank of England may raise rates earlier than expected after the Bank for International Settlements said central banks need to start raising interest rates to control inflation.
New Zealand’s dollar slumped after a report showed the trade surplus narrowed in May more than forecast.
The nation’s trade surplus was NZ$605 million ($485 million) in May compared with the median estimate of economists for a NZ$1 billion surplus.