Dear Reader,

Today's overview of economic news and market action: 

• Somewhat muted tone to market action yesterday
• Relatively quiet day of geopolitical and macro news
• Currency-wise, dollar was on the defensive
• Both euro and sterling posted fresh YTD highs vs. dollar
• EUR/USD opens this morning in and around $1.17
• Today’s macro diary includes Eurozone EC sentiment indices (June) and US core-PCE inflation (May)

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.