Dollar resumes gains ahead of US growth data

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.