fasting blood sugar

I am 63 and am "borderline" diabetic. My fasting blood sugar level is actually higher in the morning than when I go to bed at nite.  Last nite it was 103 when I went to bed and this morning it was 121.  I was expecting it to be around 90. I  am in the 80's when I come home from work before I eat dinner, and I am pretty careful with my diet.  My A1C in December was 6.6.  I have lost 35 lbs recently and workout 4 days a week.  Is my first thing in the morning blood sugar levels a concern?

[WaveRider]

"Is my first thing in the morning blood sugar levels a concern?"
Yes, it can be a sign to what's known as Dawn Phenomenon.
http://diabetes.about.com/od/whatisdiabetes/qt/dawn_somogyi.htm

It can also be associated with LADA [Latent Autoimmune Disease in Adults] aka type 1.5 diabetes.
http://www.diabetesmonitor.com/lada.htm

Ask your doctor to test your pancreas for insulin production. The test is called C-Peptide. http://diabetes.webmd.com/c-peptide

While you're at it have your thyroid checked. An irregular functioning thyroid will disrupt your pancreas insulin production. The test is called TSH [Thyroid-Stimulating Hormone].
http://www.webmd.com/a-to-z-guides/thyroid-stimulating-hormone-tsh