🇲🇽🏦 USD Financing Auction - Banorte

• In light of global uncertainty and given the local agenda, with the mid-term elections likely to add short term volatility, we suggest buying USD in dips for trading purposes. In our view, today’s financing offer will continue contributing to the improvement of local liquidity and market depth

• Today from 11:30am to 11:40am (ET) US$ 400 million will be auctioned, considering a new 79-day maturity (August 20th , 2021)

• The total amount outstanding for this program currently stands at US$ 400 million out from the US$ 60 billion available. Originally announced on March 2020, this facility had an initial duration of six months which has been extended twice, now ending on September 30th, 202

• USD/MXN has experienced a relative consolidation performance since mid-April, with recent dynamics that, despite a widespread USD weakening, have respected a trading range between 19.70 and 20.30. This realized volatility compression has come in line with lower implied volatility for the broad FX universe, as the market is factoring in its risk horizon the possibility of potential normalization of ultra-loose conditions that are currently still benefiting risk assets.