QE3 On The Radar Again

In the UK, data just out indicated that manufacturing activity contracted for May, strengthening convictions that the BoE may resort to further stimulus to counter the prevalent recessionary environment. In this perspective, the BoE’s monetary policy meeting scheduled next week would be closely eyed. Meanwhile, the situation in the Eurozone remains fragile with calls to support the region’s struggling banks getting louder by the day. However, the expected positive outcome of the Irish referendum later today may provide a brief respite to the Euro. Across the Atlantic, today’s non-farm payrolls will garner market attention especially after yesterday’s downward revision to the first quarter GDP and weak jobs reports.

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