USD/BRL starts the session on the....>

BRAZILIAN REAL: USD/BRL starts the session on the back foot, trading well within

range of the 200-dma to the downside at 3.8446. Today's move, however, remains

well within the Friday range, with the lows of 3.8597 the first obstacle. Focus

turns to the vote in the Brazilian lower house at the tail-end of this week,

particularly as reports over the weekend suggest that 'most' lawmakers are not

happy with the text of the pension bill itself. The report in Valor suggested

the government could withdraw and delay the vote instead of having it defeated

this week. Ahead of the scheduled vote, short-end vols have been ticking higher,

with the 1m measure adding close to 1 vol point so far Monday. 

-Analysts remain wary of the lingering economic hangover from pensions reform,

with the central bank's weekly survey cutting their growth forecasts for both

this week and the next.