The dollar gained against both the Euro and Yen in the shortened futures session today. The Euro fell below 1.25 and the Yen fell slightly towards the end of the trading day. Gold also finished down about 7 handles which makes sense given the strength of the dollar overall today.
The stock market drifted higher along with European equities in a low volume trading session:
For me the most important thing to keep an eye on going forward is the continued strength of the US treasury market, posting 3 days of gains despite stability in the stock market. It will be interesting to see whether this divergence can continue, as it is usually associated with times when the Federal Reserve is accumulating assets. This latest bump might stem from the strength of the US dollar, as hedge funds and trading desks put on carry trades: borrowing in a cheap low-yielding currency like the Euro and buying dollar-denominated assets.