Daily Commentary for June 6th, 2006

Good Monday Evening/Tuesday Morning,

Greetings from the brain trust here at T Squared Trading LLC. We have a lot to discuss, so let’s get right to it

News, news, and more news. There were 3 issues moving not only the currency market but the equity markets as well. Rising oil hit a 3 week high at around $74 a barrel. With the influx of travel on the horizon as summer approaches, it doesn’t take a genius to believe that this number will surely rise before heading lower. Iran's supreme leader Ayatollah Ali Khamenei stated in so many words that if you mess with his nuclear facilities there will be hell to pay. Finally, our Fed Chairman “not so” Gentle Ben Bernake spoke of core inflation potentially being a factor in further rate tightening. Mr. Bernake also delivered another proverbial kick to the investor’s groin when he expressed his disappointment in the lack of recent consumer spending.

Taking all this into consideration, the dollar performed rather well in all major pairs. On a chart basis, the dollar retraced some of its losses from Friday’s session in which it took it on the chin after a tamer than expected payroll number.

Our strategies are pointing towards a level of uncertainty as to the direction of the majors. The strong dollar move around 2pm ET was more then enough to convince our Swiss and Yen strategies to be “dollar lovers.” Our Euro strategies are still net long the dollar, as it appears it’s going to take a bit more convincing to change their microchip brains. Our shorter term Euro Speed is currently short the buck, but I must report it is approaching a long-dollar bias. So to sum it up, it appears that our strategies might be moving away from the negativism they have had towards the dollar as of late, and look like they’re starting to support the good old dinero.

Also, we apologize for the delay in getting up-to-date equity charts for our strategies. We’ve had some minor problems uploading the graphics, but look for them tomorrow am.

Thank You and Peace Out,
T2
www.tsquaredtrading.com