Hi ArranGranny – It seems to be quite common for the liver to continue pumping out excess sugar overnight, even though you are having fewer sugar spikes the rest of the time due to the lower carb/low calorie diet.
This probably because it can take time for the insulin resistance to settle and to get rid of the fat stored in the liver. Once these get back to their normal function, the fasting blood sugars should improve. So sometimes people find their HbA1C has improved (a measure of your average blood glucose over a period of time) but their morning fasting blood sugar is still a bit raised. Don’t worry, stick with it as it sounds as if all is heading in the right direction and you are doing well!