Morning Juice – Europe Session Prep

Good Morning Traders.
It is Tuesday, the 23rd of June. Here is what to look out for today.

Sentiment

The US granted Iran a 60-day license to sell oil on international markets, providing Tehran with a significant economic boost while negotiations continue over a permanent peace agreement. The move reinforces expectations that additional Iranian supply could return to global markets, helping keep downward pressure on crude prices.

Japan’s Finance Minister Katayama held a phone call with US Treasury Secretary Bessent as the Yen remained near its weakest level in almost four decades. While the conversation briefly supported the currency, gains quickly faded as markets continued to focus on the widening interest-rate differential between Japan and the US.

Demand at Japan’s latest 5-year government bond auction weakened. The bid-to-cover ratio fell to 3.11 from 3.22 previously and remained below the 12-month average of 3.47, while the auction tail widened to 0.06 from 0.04. The results suggest investors continue to demand greater compensation to hold Japanese debt amid expectations for higher rates and increased bond supply.

Oil steadied after Monday’s sharp decline of more than 3%, with markets continuing to react to early progress in US-Iran peace negotiations. The US waiver permitting limited Iranian oil sales added to expectations of improving supply conditions and further reduced the geopolitical risk premium embedded in crude prices.