Federal Reserve (Fed) Governor Christopher Waller said on Friday that he does not expect to support a change in the policy rate in the near term, adding that the outcome will depend heavily on the length of the Iran conflict, per Reuters.

BNY’s Bob Savage highlights that South American equities are being driven by commodity inflows, with energy holdings sharply above historical averages as investors use the region as a hedge against war-related supply shocks.

United States UoM 1-year Consumer Inflation Expectations above expectations (4.5%) in May: Actual (4.8%)

United States Michigan Consumer Expectations Index came in at 44.1, below expectations (48.5) in May

United States UoM 5-year Consumer Inflation Expectation registered at 3.9% above expectations (3.4%) in May

United States Michigan Consumer Sentiment Index below expectations (48.2) in May: Actual (44.8)

Rabobank’s Senior Macro Strategist Teeuwe Mevissen reports that Eurozone growth indicators have deteriorated, with French and German PMIs signaling contraction and the German IFO near a five-year low.

United States (US) Secretary of State Marco Rubio said on Friday that they would all love to see an agreement with Iran, per Reuters.

Chris Turner at ING says EUR/CHF is effectively being driven by European Central Bank (ECB) expectations, as the Swiss National Bank (SNB) is seen keeping policy unchanged despite some tightening priced in. Softer Eurozone data could limit ECB hikes and pressure EUR/CHF below key support levels.

Canada Employment Insurance Beneficiaries Change (MoM) climbed from previous -1.6% to 0.4% in March

Rabobank's Senior US Strategist Philip Marey notes that Kevin Warsh may initially avoid pushing for immediate rate cuts, instead laying out an analytical framework to justify resuming pre-war easing later in 2026.

Canada Retail Sales ex Autos (MoM) above forecasts (0.9%) in March: Actual (1.4%)

Canada Retail Sales (MoM) came in at 0.9%, above forecasts (0.6%) in March

Canada Industrial Product Price (MoM) above expectations (1.3%) in April: Actual (2%)

Canada Raw Material Price Index came in at 2.6% below forecasts (2.7%) in April

BNY’s Bob Savage says global equities are posting another weekly gain, led by technology, even as Oil and the Dollar rise and risk-off momentum in iFlow accelerates. Equity outflows have intensified overall, but flows into core government bonds remain resilient.

Mexico Gross Domestic Product (YoY) registered at 0.2% above expectations (0.1%) in 1Q

Mexico Gross Domestic Product (QoQ) above expectations (-0.8%) in 1Q: Actual (-0.6%)

Mexico 1st half-month Core Inflation below forecasts (0.17%) in May: Actual (0.13%)

Mexico 1st half-month Inflation below expectations (-0.15%) in May: Actual (-0.16%)

Bank of Japan (BoJ) Governor Kazuo Ueda said after a meeting with Japan’s Prime Minister (PM) Sanae Takaichi that both the central bank and government will continue to coordinate closely. Ueda added, “The meeting was beneficial to all parties.”

Rabobank’s Senior Macro Strategist Teeuwe Mevissen notes that Brent crude has edged higher as markets reassess prospects for a peace deal in the Iran war and the risk of disruptions in the Strait of Hormuz.

European Central Bank (ECB) President Christine Lagarde said on Friday that the long-term inflation expectations remain "broadly well-anchored," and reiterated that they are particularly attentive to the second-round effects.

The German IFO Institute Business Climate Index has unexpectedly improved to 84.9 in May, while it was expected to arrive lower at 84.2. The sentiment data in April has revised higher to 84.5 from 84.4.

Greece Current Account (YoY): €-2.344B (March) vs previous €-1.286B

Commerzbank’s Volkmar Baur highlights that the Japanese Yen (JPY) remains weak despite only mildly softer April inflation, as rising global interest rates and Japan’s high debt burden weigh on the currency.

Turkey Trade Balance above expectations (-8.51B) in April: Actual (-8.5B)

Here is what you need to know on Friday, May 22:

France Business Climate in Manufacturing registered at 102 above expectations (100) in May

Danske Research Team notes that global equities advanced, with several markets near new all-time highs, in a volatile session dominated by macro data and Iran-related headlines.