FBG is often the hardest number to get to go down, especially in Type 2 Diabetics. Because you haven't been eating all night while you sleep, your liver pushes out a jolt of glucose in the morning to help you wake up and get moving. In diabetics, this can end up being a jolt more than they want or need. Thus, even though you haven't been eating, your numbers are higher in the morning.
It's often called the "Dawn effect" or "Dawn phenomenon". Here's a link to a Mayo Clinic article
Some people have reported really good results in lowering their FBG by having a carb-y snack before bed. Others get better results with a glass or red wine. Others with a protein snack.
I've found that as I continue eating lower-carb, my FBG is slowly reducing. It's still usually between 98 and 110, but seldom as high as it used to be.