UK CPI data shocked to the downside today dipping below the 2% BoE target rate for the first time since March of 2006.

Professional system trader Art Collins shares his daily biases in the index, bonds and currency futures markets for August 14.

Derek Frey provides weekly market commentary on currencies for the week of August 13.

Inflation growth in the UK is expected to slow during the month of July, with the headline CPI figure estimated to drop 0.2 percent from the month prior, and possibly dragging the annualized rate to a 14-month low of 2.3 percent.

The US Dollar started out the week stronger against most of the majors, as better-than-expected retail sales helped quell fears that the subprime contagion would lead consumption growth to stall.

Consumer prices in the world’s fastest growing economy rose to the highest level in 10 years.

The next bearish target is the 161.8% Fibonacci extension at 1.3445.

Currency strategist Boris Schlossberg analyzes the major currencies for the week of August 13.

Fears of further problems among financial institutions dogged the currency markets at the start of the week as ECB announced yet another tender offer to infuse more liquidity into the jittery European money markets.