U.S. indexes closed mixed on Thursday, up and down two times, but overall with a positive bias on debt ceiling progress and strong economic data. The Nasdaq handily outperformed Nvidia (NVDA + 24%) after a positive earnings report showed the tech index surging more than 200 points.The strong data also eased U.S. recession fears as initial jobless claims came in at 229k, below expectations of 20k, and preliminary GDP handily beat expectations at 1.3 percent versus 1.1 percent. These, along with seemingly positive developments in the debt ceiling talks, have put pressure on the Fed, with expectations for a June rate hike soaring to 50-50 bets just days after the market had little chance of another hike.Foreign exchange marketThe dollar continued to rise on Thursday, with the dollar index breaking through resistance to hit a 2-1/2-month high of 104.310 after positive U.S. data led to a hawkish shift in pricing for the Fed's next decision in June.The Aussie and NZD were the G10's underperformers as the NZD continued to take a beating after the RBNZ raised interest rates by 25 basis points on Wednesday. Underscoring this weakness, both AUDUSD and NZDUSD broke through key levels, hitting six-month lows of 0.6499 and 0.6045 respectively. Falling commodity prices also weighed on the Australian dollar.The euro weakened between 1.0708/56 after reports that Germany has officially entered recession. However, the euro held above 1.0700 against the dollar, after hitting a March low of 24,000 after ECB member Nauter said "there is no sign that underlying inflation is abating and the ECB will keep interest rates at their peak for a long time."productGold fell again, breaking through the small 1952 support level as sellers took over as risk sentiment improved, US Treasury yields rose and US data was strong. The next real support level for XAUUSD is 1935, and judging by the recent price action, it may be tested in the near future.Despite receding recession fears, crude oil plunged intraday on Thursday, with the downside starting in early European trade after Russian Deputy Prime Minister Alexander Novak played down the prospect of further Opec + production cuts at a June 4 meeting. A strong dollar also weighed on the greenback.Today's economic calendar shows that Aussie retail sales will be the one to watch for Aussie traders, with the Fed "favouring" the inflation measure, the core PCE price index, later in the trading day. With money markets pricing in a 50-50 chance of a rate hike or hold at the next FOMC meeting, there should be some exciting market action this release.