Dear Reader,

Today's overview of economic news and market action: 

• Risk appetite improved last week, as the Isreal-Iran conflict de-escalated …
• Meantime, US market rate expectations softened, amid some dovish remarks from Fed officials …
• Against this backdrop, the dollar was on the defensive last week …
• This sees EUR/USD open this morning up above $1.17 …
• GBP/USD is north of $1.37 …
• USD/JPY is back below ¥144 …
• Elsewhere, EUR/GBP is near the midpoint of 85-86p …
• This week, a busy US calendar includes the US labour market report for June …
• US fiscal/trade/monetary policy developments will also be in the spotlight …
• In the Eurozone, flash inflation (June) and the ECB Forum on Central Banking will gain attention …   

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.