* C$ rises to 96.95 U.S. cents
* Bond prices higher across the curve
TORONTO, July 30 (Reuters) - The Canadian dollar gained against its U.S. counterpart on Friday morning as U.S. stock index futures fell and the greenback weakened on worries U.S. growth may show the world's biggest economy is losing steam.
The second quarter GDP data, due at 8:30 a.m. (1230 GMT), is expected to show that a capital investment drive by businesses was sated by imports and consumer spending tapered off. [ID:nN29111411]
Canada's gross domestic product figures are also in focus for the Canadian currency, and are expected to show a 0.1 advance in May from April.
"Obviously the market has been back and forth buying dollars on risk-off and selling dollars on risk-on but I do think that things are starting to get to the point where we're going to make a little more sense of things," said Steve Butler, director of foreign exchange trading at Scotia Capital.
"At some point I think weaker equity markets won't necessarily be good for the dollar in terms of risk-off ... I think that there are starting to be more and more concerns about the health of the U.S., the debt and deficit levels and obviously we got a warning about sovereign ratings in the U.S."
On Thursday Moody's Investors Services told Dow Jones newswire that the U.S. government needs to elaborate a credible plan to address its soaring debt in order to maintain its Aaa credit rating. [ID:nN29190063]
At 7:54 a.m. (1154 GMT), the Canadian currencywas at C$1.0315 to the U.S. dollar or 96.95 U.S. cents, up from C$1.0362 to the U.S. dollar, or 96.51 U.S. cents, after falling for the previous two days.
With riskier assets in decline ahead of the GDP data, Canadian bond prices tracked U.S. Treasuries higher.
The Canadian two-year bondwas up 7 Canadian cent to yield 1.496 percent, while the 10-year bond added 5 Canadian cents to yield 3.154 percent. (Reporting by Claire Sibonney; Editing by Theodore d'Afflisio)
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