Sterling benefits from Eurozone worries

There has been a great lack of data out of the UK this week so the greatest influence has been news from elsewhere. Against the euro we have seen sterling benefit from poor Eurozone data and increased unrest in Ukraine. Against the US dollar, which has been in the ascendancy, sterling managed to hold steady although it is still close to five month lows.
Today we see the release of keenly awaited consumer inflation data from the Eurozone. With the threat of deflation still looming over the economic bloc, a better-than-expected inflation reading could result in significant losses for sterling, and vice versa.