• Mexican Peso remains stable against US Dollar alongside solid April Retail Sales data.
• Political uncertainty over AMLO's judiciary reforms limits further gains, with key announcements expected from President-elect Sheinbaum.
• US housing sector weakens and softer jobs data emerge.
• Fed's Kashkari suggests disinflation may take a year or two.

The Mexican Peso clung to gains against the US Dollar on Thursday after economic data showed the country’s economy remains robust. However, political uncertainty about a pending judiciary reform caps the emerging market currency's advance. The USD/MXN exchanges hands at 18.40, virtually unchanged.

Mexico’s economic docket revealed solid Retail Sales in April, exceeding estimates and March’s figures. Later on Thursday, President-elect Claudia Sheinbaum will reveal the names of six cabinet members who have collaborated with her since October 1.

In the meantime, political noise about President Andres Manuel Lopez Obrador's (AMLO) reforms submitted to the congress had waned, as reflected by the USD/MXN stabilizing at around 18.40-18.50. Nevertheless, this consolidation could be the calm before the storm, as the newly elected Mexican congress will begin on September 1.

Across the border, the US housing sector continued to deteriorate, while jobs data was softer than expected. Federal Reserve speakers continued to cross the newswires, with Minneapolis Fed President Neel Kashkari speaking.

Kashkari stated that it will probably take a year or two to lower core inflation to 2%. He added the path of interest rates would depend on the economy, emphasizing, “We are getting disinflation despite remarkable economic growth.”