• Mexican Peso weakens as USD/MXN climbs on judiciary reform concerns after new Congress convenes.
• Mexico's Business Confidence improves slightly in August, while Manufacturing PMI hits a two-year low, indicating sectoral challenges.
• S&P Global cites weak sales, competition from China, and highway insecurity as key issues for Mexican manufacturers.

The Mexican Peso begins September on a lower note, tumbling more than 0.50% amid renewed fears that the judiciary reform is a go and could be approved during the first week of the new Mexican Congress that took office on September 1. The USD/MXN trades at 19.80 after jumping from a daily low of 19.60.

Mexico’s economic docket featured Business Confidence in August, which improved slightly compared to July’s data. In the meantime, business activity in August, as measured by the S&P Global Manufacturing PMI, slumped to its lowest level in two years, the agency revealed.

Pollyanna De Lima, Economics Associate Director at S&P Global Market Intelligence, commented: “August proved to be another difficult month for Mexican manufacturers, with firms trimming output, employment, and stocks due to subdued sales in both the domestic and international markets. Total order book volumes dropped to the greatest extent in two years, boding ill for near-term production prospects.”