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Monday, June 3

3rd Jun - US Close: Bad US data

USDJPY's dip below 100 was interesting - still within the upward trend channel, probably a good time to buy. The overall USD weakness was driven by the lousy ISM index, which immediately pushed expectations of an immediate Fed's QE-tapering further out in time. Couple of good ones on Yurrup by Münchau and Krugman.

Previously on MoreLiver’s:

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Roundups & Commentary
Markets – Between The Hedges
The Closer – alphaville / FT
US: Stocks Ignore Horrible Economic Data, Surge On Tuesday Frontrunning – ZH

Austerity, like a B-movie monster, will keep coming backFT
Wolfgang Münchau: Despite its debt crisis, the eurozone behaves like a regular large, closed economy. The trouble is that it is run, and often analysed, as no more than the sum of its parts. The tragic error of the eurozone’s policy makers is to repeat this fallacy of composition again and again. It is the same with austerity. That, too, will return.

The Macroeconomics of European DisunionKrugman / NYT
Every once in a while it’s worth backing up and thinking about the fundamental craziness of aggregate European policy.

The ECB, negative rate confusion and the prepay tax optionalphaville / FT
Beat Siegenthaler at UBS observed in a note on Monday that there still seems to be a lot of confusion about the likelihood and usefulness of negative rates being introduced.

Statement by the EC and the ECB following the conclusion of the third review of the financial assistance programme for SpainECB

Why The Fed’s Not Tightening Any Time SoonPragCap

Fed’s Williams Open to Trimming Bond PurchasesWSJ
He is open to cutting the central bank's bond-buying program over coming months, as long as the economy continues to make good progress.

Fed’s Lockhart: Nearing Time to Trim Bond PurchasesWSJ
The Fed is nearing the day where it can consider reducing the size of its bond-buying stimulus effort, but even when that happens, smaller-sized purchases are unlikely to be the major shift in policy some think them to be, a veteran U.S. central bank official said.

U.S. 10 Year Bond Yields in Perspective (1790-Present)The Big Picture

ISM data came in on the soft side with a sub-50 reading – Tim Duy’s Fed Watch
ISM Manufacturing Drops Below 50; Lowest Since June 2009 – Bespoke
Huge Miss in May ISM; Manufacturing Now in Contraction – Mish’s
The ISM report: US manufacturing slowest since 2009 – Sober Look
Huge Manufacturing ISM Miss Sends Markets Soaring – ZH

Public Construction Hits 7-Year Low – WSJ
Construction Spending increased in April – Calculated Risk

World-Wide Factory Activity, by CountryWSJ
World-wide manufacturing was moderately expanding in May, according to one index, even as the U.S. moved into contractionary territory and the euro zone's downturn continued.

The Full List Of 2013's Bilderberg AttendeesZH

Housing bubbles and capital controlsA Fistful of Euros

The Ten SuggestionsFED
Chairman Ben S. Bernanke at the Baccalaureate Ceremony at Princeton University, Princeton, New Jersey