|07:00||Switzerland||Trade Balance||January||2.8|| ||3.1|
|07:00||United Kingdom||PSNB, bln||January||-24.8|| ||6.2|
|09:30||United Kingdom||Purchasing Manager Index Services||February||48.7||49.2||53.3|
|09:30||United Kingdom||Purchasing Manager Index Manufacturing ||February||47||47.5||49.2|
|10:00||Eurozone||ZEW Economic Sentiment||February||16.7|| ||29.7|
|10:00||Germany||ZEW Survey - Economic Sentiment||February||16.9||22||28.1|
|11:00||United Kingdom||CBI industrial order books balance||February||-17||-14||-16|
GBP strengthened against other major currencies in the European session on Tuesday as investors digested better-than-expected UK flash PMI readings.
S&P Global reported its preliminary estimates showed business activity in Britain witnessed a solid rebound in February. The S&P Global/CIPS UK composite PMI climbed to 53.0 this month from 48.5 in January. That marked a return to expansion territory after six months of contraction and surprised markets, expecting improvement only to 49.
The details of the survey, however, revealed that the growth in the composite indicator in February was mainly due to a surge in the services PMI, which rose to 53.3, its highest in eight months. Meanwhile, the manufacturing PMI (49.2) improved but remained below the 50.0 no-change value.
Also, the survey showed that the prices charged inflation eased only marginally in February, especially in the service economy, where rising staff salaries reportedly had led to a sustained rise in prices charged.
Overall, the latest data raised expectations that the UK’s economy could avoid a deep recession and added to the likelihood that the Bank of England would continue hiking its interest rates to calm inflation.