If not QE3, some other type of action to further loosen monetary policy is increasingly expected from the Federal Reserve, said Sterling Smith, commodity trading adviser and market analyst with Country Hedging.

FORBES: Gold Surges As Weak Jobs Data Fuels Expectations For More Quantitative Easing

With monetary policy being tightened by a rise in the yen and in long-term interest rates, it must now decide whether to loosen further.

ECONOMIST: Japan��s economy

The full-month data released Thursday showed just how wrong he was, putting further pressure on authorities to loosen policy.

FORBES: After Weak Imports, Investors Say 'China Down But Not Out'

Now with global concerns about a possible recession in Europe that might spread out into Asia and even the U.S., the government of Brazil, unlike those of Europe and the U.S. where interest rates are already at record lows, is in a position of being able to cut interest rates and loosen policies to further stimulate its economy.

FORBES: Lots Of Reasons To Love Brazil Again

For starters, the lack of a decent recovery means that the Bank of England may have to loosen monetary policy even further this year, meaning that the market interest rate that foreigners can earn holding sterling will stay very low.

BBC: A pounding for sterling in 2013?

Implied yields fell between two and 10-basis points at further maturities as dealers predicted the Reserve Bank would be more likely than not to loosen policy at some point.

FORBES: Treasuries Cool After Early Gains Driven By Europe Stress