ECB's pain threshold to reach soon

EUR has surprisingly taken on the role as the ultimate safe haven. The main question is when the ECB's pain threshold is going to be reached, as EUR appreciation is the last thing it needs in its current efforts to fuel inflation, states Commerzbank. ECB Vice President Vítor Constâncio will have the opportunity at an event in Mannheim this afternoon to comment on the situation. Should he seem relaxed about the exchange rate the market is likely to consider this as an invitation for further EUR strength.