Daily Commentary for June 27th, 2006

Good Monday Evening/Tuesday Morning,

Strong US Housing Supports Fed Hike And Buffet Gives Back
The US dollar weakened today despite strong housing numbers that point to what seems like a 100th straight rate hike on Thursday. Some of the Forex experts believe this is just some consolidation before the mighty dollar soars again, perhaps later this week. Today’s action in the energy market will make you rethink the purchase of that new Ford Expedition you have had your heart set on. Crude Oil shot up 1.4% to $71.85 a barrel…..ouch if you use gas, wonderful if you were long Crude Oil. Warren Buffett made a pretty sizeable contribution to the fund started by Bill Gates and his wife Melinda. He wrote a check for close to all of his $44 billion. Mr. Buffett made a statement saying it was harder finding a cause to give his money away to, than to earn it in the first place. Personally speaking, if I had $44 billion dollars of liquid cash, sitting in a bank, I would first throw one final helluva’ party, then give a good portion to a deserving charity. Seriously, though, cheers to Mr. Buffett and his philanthropic gesture.

Technical Indicators
Eur/Usd
This pair had a nice 100 pip trading range, on which to make some nice money to pay for gas. Traders seem to think the bounce off the 1.2500 figure, was just temporary and will be back to test that level shortly. On the topside 1.2650-.2700 appears to be the resistance point.
Usd/Jpy
The possible resignation of Bank of Japan Governor Fukui is the primary driver in this pair. The board wants to see him stay, and the public wants to see him go. Watch for some nice moves in both direction as a result. 115.50 is a key level on the downside to watch
Usd/Chf
Swiss retail sales appeared to be the catalyst for the CHF strength today. Look for temporary support in the .2380-.2390 range.

What Our Strategies Are Telling Us as of 6/26, 10PM ET:
We have 10 strategies that we will report to our clients on a daily basis in regards to their respective dollar bias. Our intent is not to provide investment advice to those who read this following section. We are merely reporting the biases that our strategies are exhibiting.

Eur/Usd
$ Short Bias
Usd/Jpy
$ Short Bias
Usd/Chf
$ Short Bias

As you can plainly see here our strategies are not to fond of the dollar as of late. I must point out though, about 1/3 of our strategies have no position. That might point to some overall uncertainty, but obviously there is a negative dollar bias being exhibited by those participating.


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T2
www.tsquaredtrading.com