The EUR/GBP currency pair settled above recent low of 0.8479, its weakest level since April 7th, as the Euro drew support from stronger-than-expected CPI inflation data out of the Euro Area.

Preliminary data by Eurostat showed that annual consumer price inflation in the Euro Area had remained stable at 2.2% in April, outpacing market consensus of 2.1%. The rate was just above the European Central Bank’s 2% target.

Yet, inflation in services picked up to 3.9% in April from 3.5% in March.

And, the bloc’s annual core inflation rate, which excludes volatile categories such as food and energy, accelerated to 2.7% in April from a three-year low of 2.4% in March. The core rate also exceeded market expectations of 2.5%.

At the same time, the unemployment rate within the bloc has remained at a record low of 6.2% for the sixth straight month in March.

Markets are still pricing in 60 basis points of additional rate cuts by the European Central Bank by the end of the year following the data.

Meanwhile, the Pound had received a boost from higher investor risk appetite following recent reassuring comments from China’s Commerce Ministry. According to a Bloomberg report, Thursday saw the ministry signal openness to engaging in negotiations with Washington, emphasizing that any discussions should be rooted in “sincerity.”

The remarks were received positively by investors, who interpreted them as a constructive sign amid the ongoing trade tensions between the US and China.

However, the upside for the Sterling may be limited, as investors increasingly expect the Bank of England to lower interest rates at its upcoming policy meeting.

The EUR/GBP currency pair settled 0.10% higher at 0.8509 on Friday.

The minor Forex pair lost 0.28% for the week.