You shall never copy and paste any image from Photoshop or any other raster image application to InDesign.
From Photoshop save your file as PSD or PDF and in InDesign use File > Place… to import it in you file.
BTW: The support for color management with grayscale or b&w images in InDesign is very limited.
Is there any transparency in the image? When you cut and paste the transparency is flattened and when you drag and drop (place) the transparency is maintained, so the Transparency Blend space would affect the preview when you place.
Thanks Willi, will make sure I save & place the files in future.
Hi Rob, yes there is transparency in the image so that will explain it.
If I place the image to maintain the transparency I'm after (but the preview is still affected) will it still print correctly? I notice that in the Transparency Blend space if I change it to RGB it will show correctly in the preview but I'm printing it so don't want to change the mode...
(but the preview is still affected)
When there's transparency on the page the soft proof is via the transparency blend space profile—your document's CMYK profile if it is CMYK. It's the same as turning on Overprint Preview. If your placed image is RGB the preview is showing you what will happen when it converts to document CMYK.
In Photoshop you can get the same preview by setting the Working CMYK profile to match your ID profile and turning on Proof Colors.