Dear Reader,

Today's overview of economic news and market action: 

• Investor sentiment continued to firm yesterday …
• Currency-wise, the dollar started the day under some downward pressure …
• However, the greenback recouped most of its losses overnight …
• Elsewhere, sterling was holding a slightly firmer tone yesterday …
• This sees EUR/GBP open today back in the lower half of 85-86p …
• GBP/USD is north of $1.36 …
• EUR/USD remains above $1.16 …
• Today, the attention will remain focused on Fed Chair Powell/developments in the Middle East …

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.