Dear Reader,

Today's overview of economic news and market action: 

• There was a subdued tone to investor sentiment yesterday on both sides of the Atlantic …
• A heavy slate of data, remarks from central bankers and the US tax and spending bill impacted sentiment …
• Against this backdrop, EUR/USD probed above $1.18 yesterday, but the move could not be sustained …
• This sees EUR/USD open today in the top half of $1.17 -1.18 …
• EUR/GBP is in the upper part of the 85-86p range …
• There is a quieter look to today’s data calendar …

All rates quoted are indicative market rates.

The June meeting of the US Federal Reserve Open Market Committee. (FOMC) saw the central bank leave policy on hold. The target range for the Fed funds rate was maintained at 4.25-4.50%. This represented the 4th meeting in a row where the Fed left policy unaltered and was very much in line with market expectations.

The June meeting of the Bank of England's Monetary policy committee (MPC) saw the central bank leave the Bank rate unchanged at 4.25%. This followed a 25bpd reduction in May. Today's decision for unaltered rates was very much in line with the market expectations. So far in the current easing cycle, which began in August last year, the BOE has caught a total of 100bps.