American focus: USD fell after Israel attacks [E]

In the second part of American session USD recovered some earlier losses. 

USD was under pressure after Israel bombed Beirut's international 

airport in the latest escalation of the conflict in the Middle East. 

Three Israel missiles got on runway of the airport. All the planes to 

Lebanon, now land on Chyprus. The dollar sustained losses against the 

Japanese yen. The yen was also buoyed by speculation the Bank of Japan 

will lift its key interest rate tomorrow for the first time in six 

years. The yen is rebounding from its biggest one-day decline against the 

dollar in 13 months as the Bank of Japan policy makers started a two-day 

meeting to decide whether to raise interest rates. Many of the BOJ's nine 

policy board members have determined the economic recovery is 

self-sustaining, and they will increase interest rates. The yen has risen 2.5 

percent since the Bank of Japan ended a policy of increasing 

borrowing costs on March 9. 

The yen was also supported as some traders speculated China may raise 

rates for the second time in 2 years. Central bank adviser Yu Yongding 

said today China should let the yuan strengthen, which may spur gains in 

the Japan currency, the nation's largest trading partner. 

Nevertheless, the euro was supported after a government report today 

showed inflation growth in Germany, Europe's largest economy, held at a 

four- month highs in June. It added to evidence that on August meeting 

the ECB may lift base rate from current 2.75%. According to statistics, consumer 

prices rose 2% y/y. Joaquin Almunia said interest rates aren't impeding 

economic growth in the region.

Main indexes on Wall Street appeared under pressure on Thursday in a 

light of oil prices hike, increase of geopolitical anxieties and 

pessimistic start of quarter reporting season.

Oil reached a record $76.40 per barrel after weak report of U.S. Energy 

Department about oil stockpiles on Wednesday. Fears about possible 

deliveries disruts increased because of Iran's  nuclear 

program and violence between Israel and Lebanon. It put an additional 

pressure. Besides, announcements about explosions in Nigeria supported 

speculative demand. 

Corporate news: Britain insurance company Aviva has agreed to pay $2.9 

bln. cash for U.S. AmerUs Group. 

Carlos Ghosn, the CEO of Nissan and Renault, told the French newspaper 

Le Monde that an alliance between those two companies and General 

Motors would represent a "huge opportunity," but only talks will tell if it 

could work. Ghosn and GM CEO Rick Wagoner are set to start those talks 

on Friday.