Euro/dollar climbed to $1.1561 on the 12th and held near $1.1556 after U.S. July inflation data reinforced the case for Federal Reserve easing. The Labor Department said headline CPI rose 3.4% from a year earlier, down from 3.5% in June and matching expectations, while core CPI (excluding food and energy) increased 2.5%, also in line with forecasts and the slowest pace since February. The figures pushed U.S. 10-year Treasury yields briefly into the low 4.63% range, extended broad dollar selling and lifted the euro to its highest level against the dollar in about a year. The market now largely expects a rate cut at the September Federal Open Market Committee (Fed's rate-setting panel) meeting, though upcoming U.S. retail sales, employment data and comments from Fed officials are seen as key for judging whether inflation is cooling durably and whether EUR/USD can clear $1.16.