• Mexican Peso trims losses but still set for over 2% weekly decline.
• US PCE Price Index signals steady inflation, boosting Fed rate cut expectations.
• Judiciary reform talks in Mexico start August 1, stirring economic and political concerns.

The Mexican Peso trimmed some losses against the US Dollar on Friday, yet it’s set to end the week with over 2% losses. The Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditures (PCE) Price Index, came as expected annually and rose a tenth in core monthly figures. The USD/MXN trades at 18.39, down 0.28%.

Wall Street posted solid gains, reflected in the exotic pair as the peso advanced modestly, taking advantage of the greenback weakness, which tumbled more than 0.12% according to the US dollar index (DXY). Inflation data in the US shows some signs of stickiness. Yet, most analysts commented that the reading “shows enough progress,” according to a source cited by Bloomberg, hinting that the Fed could begin easing policy in September.

The Mexican currency shrugged off traders' concerns about talks of the judiciary reform, which are set to begin on August 1, aimed to lay the draft that could be approved once the new Mexican Congress begins its three-year period a month later.