High glucose readings only in the morning can be due to 3 things.

The dawn phenomenon--- where the low sugar during the night stimulates liver release of new glucose to help you wake up.
This can be helped in several ways. Finding the low time during the night by testing, you can have a protein snack with some carb --no more than 200 cal-- and hopefully this will lead to better morning readings. The dawn phenom is also thought to be a cortisol increase which then raises blood sugar also.

The other two causes---
http://answers.google.com/answers/th...id/588816.html

I have insulin resistance and finally now beginning type II diabetes. I have mostly elevated fasting levels.

But this summer I started l-theanine (from a recommendation on our PN board here) and after 3 weeks this lowered my morning sugars to 103 ave. I was able to stop my metformin entirely for the last half of my vacation even. I've been looking this up and in my case I guess it is because l-theanine lowers cortisol levels. It may not work for everyone. Theanine is also found in green tea and black, but not at the levels I am using.
150mg of Suntheanine at night.

In the US blood glucose is measured with different numbers than you are reporting on your post. So you must be out of the country. Measuring A1C is not useful daily. This is a long term effect on red blood cells which die every 3 months or so to be replaced by new. So the A1C is only done every 3 months or longer to be accurate.

I've been testing my morning fasting glucose for months now, and I see a cyclic effect depending on what I ate the night before. Without a snack or something around midnight or 1am I will test higher. Skip dinner and I will be high too. It seems fasting itself raises my blood sugar the most.

I try to control carbohydrate intake very strictly. I have a small amount daily. I find oatmeal in the morning...with cinnamon on it and a tablespoonful of peanut butter mixed in will not raise my sugar readings at all. Balancing carbs with protein helps keep blood sugar more stable. This is the basis for the Zone diet, which you might want to look into.