• Mexican Peso climbs after judiciary reform approval with state-level voting underway to finalize the constitutional change.
• Moody’s warns the reform could threaten Mexico’s judicial independence and impact the country’s credit rating.
• Mixed US economic results reduce likelihood of a 50 bps Fed rate cut with upcoming US Consumer Sentiment data in focus.

The Mexican Peso rallied sharply against the Greenback on Thursday following the approval of the judiciary reform on Tuesday. US economic data showed mixed readings, with an uptick in factory inflation and soft jobs data. The USD/MXN trades at 19.60, down almost 1%.

Mexico’s political turmoil has faded, though the approval of the judicial reform is a certainty. Congresses in 32 states began the approval process, and once voted by a majority in 17 states, it will be declared a law. Aside from this, the economic docket is empty. The next economic release comes on September 18, when INEGI will reveal Aggregate Demand and Private Spending data.

Regarding the judicial reform, Moody’s warned of its impact on Mexico’s credit rating. An analysis emphasizes that “the constitutional change threatens the independence and impartiality of Mexico's judiciary” and “would undermine sovereign credit quality.”

The Greenback remained offered in the US after the US Bureau of Labor Statistics (BLS) revealed that the August Producer Price Index (PPI) figures were mixed. At the same time, the number of Americans filing for unemployment benefits rose as estimated and cleared the previous week's reading.