Dear Reader,

Today's overview of economic news and market action: 

• Equity markets continued to move higher on both sides of the Atlantic yesterday …
• Data-wise, the US labour market report for June was stronger than anticipated …
• Following the release, US futures contracts firmed somewhat …
• Amid the firming in US rate expectations, the dollar was in the ascendancy …
• At the same time, sterling recouped some of its losses from the day prior …
• This is reflected by EUR/GBP opening today down near the 86p mark …
• GBP/USD is operating up in the top half of the $1.36-1.37 corridor …
• Meanwhile, EUR/USD remains in the upper region of $1.17-1.18 …
• Today, there is a quieter look to the macro calendar, partly owing to a US market holiday …

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.