News
Tuesday, September 15, 2026
What’s happening: The US dollar recorded gains this morning, trading close to two-week highs.
What happened: The US dollar index rose for the fifth straight session ahead of the Federal Reserve’s interest rate decision this week.
Higher crude oil prices stroked inflation concerns, raising speculations of the Fed hiking its benchmark interest rates.
Why it matters: The US Federal Reserve is scheduled to announce its policy decision on Wednesday, September 16. Investors widely expect policymakers to raise interest rates by 25 basis points, marking the first rate-hike since 2023.
The Fed will also issue updated economic projections after its meeting, which could provide further insights into the central bank’s policy outlook ahead.
Meanwhile, the Bank of England is projected to leave its interest rates unchanged on Thursday, while the Bank of Japan is expected to increase rates on Friday.
The Strait of Hormuz remains mostly closed to commercial traffic and diplomatic efforts to reopen the route have stalled. Saudi Arabia has also suspended operations on the East-West Pipeline following drone attacks.
Higher crude oil prices continued to add to inflationary concerns, which in turn raised speculations of monetary tightening by the Federal Reserve. The benchmark 10-year Treasury yields also topped the 5% level for the first time since October 2023.
The US dollar index, which measures the greenback’s performance versus a basket of major peers, rose more than 0.2% to 99.60 this morning, rising for the fifth session in a row.
The USD/JPY forex pair added 0.3% to reach 154.76, while the GBP/USD pair slipped 0.1% to 1.3487.
What to watch: Investors will keep an eye on the Fed’s policy outlook and the ongoing US-Iran conflict.
Data on ADP employment change (1615 UAE Time) and NY Empire State manufacturing index (1630 UAE Time) from the US will be released today. The ADP Research Institute reported that US private employers added an average of 12,500 jobs per week during the four weeks ending August 22, compared to an average weekly rise of 10,000 jobs in the prior four-week period.
Analysts expect the New York Fed’s Empire State manufacturing index to decline to 14.7 in September from 20.6 in previous month.
Context: The CSI 300 index traded lower this morning as investors assessed the latest economic reports.
Details: A mixed batch of economic reports released by China reinforced concerns around the country’s economic recovery.
China’s fixed-asset investment fell 7.2% year-over-year in the January–August period, compared to a 6.7% decline in the first seven months of 2026.
Retail sales growth eased to a three-month low of 0.4% year-over-year in August from 0.6% in July, while urban unemployment rate rose to a five-month high of 5.3% last month, from July’s 5.2%.
Lending some support to overall growth concerns, China’s house price index declined 3% year-over-year in August, better than the previous month’s 3.2%. This marked the slowest decline since December 2025.
Industrial output rose 5.2% year-over-year in August, accelerating from 4.5% in July and topping market estimates of 4.8%.
Global AI stocks came under pressure on Monday after leaders of the biggest tech firms called for a slowdown in the development of AI models, warning of potential risks from the technology.
The CSI 300 Index fell 0.01% to 4,479.47, while the SSE Composite Index shed 0.10% to trade at 3,881.41 this morning.
What to watch: With no major economic data scheduled from China this week, investors will continue monitoring global economic growth and the ongoing US-Iran conflict.
Other Markets: European indices closed mostly lower on Monday, with the DAX 40, CAC 40 and STOXX Europe 600 Index down by 0.50%, 0.76% and 0.49%, respectively, and the FTSE 100 up by 0.44%.
US President Donald Trump said Russia and Ukraine have agreed to stop attacks on energy facilities. The news sent the USD/RUB pair higher in forex trading this morning.
New Zealand’s electronic card transactions fell 0.9% in August, following a 1.2% gain in the previous month, which exerted pressure on the NZD/USD forex pair.
South Korea’s export prices jumped 42.4% year-over-year in August. This being a slowdown from July’s 48.9% sent the USD/KRW pair higher in forex trading this morning.
Canada’s manufacturing sales declined 0.4% to C$78.7 billion in July, compared to a 0.1% gain in June. The latest reading missing market estimates of a 0.2% decline lent support to the USD/CAD forex pair.
India’s headline inflation rate accelerated to 4.82% in August, from 4.45% in the previous month. The latest reading surging to the highest level since December 2024 sent the USD/INR pair higher in forex trading this morning.