Canada's economy grew 0.1% in July, beating expectations of a 0.1% contraction, and matching June's 0.1% growth. 

US unemployment claims fell to 193 thousand in the week ending September 24, the lowest since April, and beating estimates of 215 thousand, while lower from the previous reading's revised 209 thousand reading. 

US GDP shrank 0.6% in the second quarter according the final reading, matching estimates and the preliminary reading, and adding to the 1.6% contraction in the first quarter. 

Dollar rose in European trade against a basket of major rivals, after a hiatus from gains yesterday off 20-year highs while US 10-year treasury yields rebound. 

Such developments come ahead of US growth data for the second quarter, which will impact pricing for Federal Reserve's rate hikes until March. 

The Index

The dollar index rose 0.7% to 113.79, after losing 1.4% yesterday, the first loss in four days, and the largest since March 2020 on profit-taking away form 20-year highs at 114.78. 

The dollar also tumbled yesterday on profit-taking while US 10-year treasury yields dipped after Bank of England intervened in the UK bonds market. 

US Bonds

US 10-year treasury yields rose 3.5% on Thursday, resuming the gains after a hiatus yesterday away from 14-year highs at 4.019%, in turn boosting the greenback. 

The developments come ahead of important US data later today on unemployment claims and GDP growth. 

Growth Data

US GDP is expected to have shrunk 0.6% in the second quarter, after falling 1.6% in the first quarter.

If a contraction was confirmed in the second quarter, it'll hurt the bonds market in the short and medium terms, and will bolster gold prices for fresh gains.