Published at 12:03 (GMT) 09 Dec

USDBRL

With technical rebound in EUR and S&P futures, BRL is regaining ground and trading below 1.75 with a 0.8% gain. BRL remains solid because market is still expecting inflows linked to IPOs before the end of the year and despite the 2% IOF tax. Today is the Copom meeting decision where the market is unanimously expecting no change in rates with the discussion mostly on the timing and speed of the reversal of monetary easing in 2010. We are expecting a very quick hike in April but the size of the total reversal limited to 150bps. Inflation data for November IPCA came under expectations. Look for 1.73/75 range.