As US labor market and housing data is quite discouraging many analysts start wondering whether American monetary authorities will extend monetary stimulus to promote the rebound of the nation’s economy in form of the third round of quantitative easing.

The greenback was under pressure this year as the QE2 made the interest rates in the United States decline, while the other nations in the world were tightening monetary policy. So, the market has been looking forward to the end of the Fed’s $600-billion bond purchase program to see some relief in US currency. However, the weak macroeconomic data made brought serious doubts to the market.

Analysts at MF Capital think that declining bond yields point at the weakness of American economy. In their view, the Federal Reserve will find it necessary to act and continue buying Treasuries.

Economists at Citigroup note that the fact that US stocks are bringing better revenues than bonds. The specialists reminded that the last time it happened in a sustained way was when markets were pricing in the current round of easing. That time dollar was also weakening. Although the greenback’s trading not as weak as at the end of April, the pace of its depreciation during the last week was high enough, so it’s possible to assume that forex markets is preparing to the new stimulus program. According to the bank, Federal Reserve’s chairman Ben Bernanke will be able to persuade the FOMC to support QE3 only if US GDP posts negative dynamics in at least one quarter. As a result, Citi estimates the probability of new round of QE as low.

Economists at JPMorgan Chase are sure that the QE2 will be the last as additional monetary stimulus will lead to rather bad political consequences.