Equity markets were little moved on news from the US / North Korea summit, as investors now look to the Federal Reserve rate decision this evening.
Barclays Research expect the committee to raise the target range for the federal funds rate 25bp, to 1.75-2.0%, justified by recent data that suggest acceleration in economic activity and robust employment.
The May US inflation report, published yesterday, showed headline CPI rose 2.8% y/y, supported by strong increases in energy prices.
The USD caught a bid tone which continued overnight further to headlines that Federal Reserve Chairman Jerome Powell is considering holding a press conference after every policy meeting rather than every other meeting (WSJ).
In the UK, the Government succeeded in persuading the rebel alliance of Tory MPs not to vote through the Lords amendment on a meaningful vote (324 to 298).
Voting continues today, but is expected to be less relevant to markets than UK inflation data this morning. Barclays Research expect UK headline CPI inflation to come in at 2.3% y/y in May (up 0.1pp from April) and core CPI to ease to 2.0% y/y.
GBPUSD support comes in at 1.3345 ahead of 1.3280 and 1.3200 with resistance at 1.3475 ahead of 1.3600. EURGBP 0.8830-50 resistance area with support at 0.8750 ahead of 0.8690.