• Mexican Peso strengthens despite weak domestic data; Gross Fixed Investment hits lowest level since February 2021.
• Mexican Supreme Court set to discuss judicial election proposal amid political tensions.
• Trump’s tariff threat and Fed's potential rate cut add to Peso’s volatility.

The Mexican Peso appreciates against the Greenback during the North American session, posting gains of over 0.70% amidst uncertainty in the outcome of the US presidential election. Data from Mexico showed that Gross Fixed Investment plummeted sharply, while Factory Orders in the United States (US) improved but remained in contractionary territory. The USD/MXN trades at 20.12 after hitting a daily high of 20.16.

August’s Gross Fixed Investment in Mexico plunged to its lowest level since February 2021, blamed on lower construction investment and a sharp decline in non-residential construction. In the meantime, the Instituto Nacional de Estadistica Geografia e Informatica (INEGI) is expected to announce October’s inflation data, which is expected to moderate further, according to a Reuters poll.

Aside from this, on November 5, Mexico’s Supreme Court will begin discussing a proposal by Supreme Court Judge Juan Luis González Alcántara Carranca. According to The New York Times, his proposal is simple: “Contenders for the Supreme Court and other top courts would have to stand for election. But thousands of other judges, appointed based on years of training, would remain in their jobs.”

Meanwhile, Mexican President Claudia Sheinbaum said she would wait to see how the judges vote, though she added, “I was elected by the people of Mexico, and eight ministers cannot be above the people.”