Dear Reader,

Today's overview of economic news and market action: 

• Somewhat surprisingly, the focus on currency markets centred on sterling yesterday …
• The pound was under pressure as concerns regarding the UK fiscal position increased …
• Some dovish remarks from BoE official Taylor were also unhelpful for the UK currency …
• This saw UK Gilt yields rise by circa 5-20bps, while sterling shed 0.7% vs. the euro & dollar …
• As trading gets underway today, EUR/GBP is up near the midpoint of 86-87p …
• GBP/USD is down in the lower half of $1.36-1.37 …
• Elsewhere, EUR/USD remains just below $1.18 …
• Today, a busy US data docket (including the labour market report) pose some event risk for the dollar …

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.