Both the euro and stock markets across Europe climbed following the release of the US inflation data on Tuesday. Inflation in the US eased to 2.9% year-on-year in July, down from 3% in the previous month and below the expected 3%. Coupled with the cooler-than-expected Producer Price Index (PPI) released on Tuesday, investors believe the data has solidified the case for a rate cut by the Federal Reserve (Fed) next month. Markets are now even pricing in the possibility of a deeper cut of 0.5 percentage points. Euro reads new high for the year The euro rose above 1.1 against the US dollar, the hi…