Eurobonds must await stricter policy oversight of national budgets, EU economics commissioner Rehn says. There can be no further mutualization of debt with deeper integration, he says. Broad political support from creditor nations is needed as well, Rehn said, via the Bloomberg wire.

With a German election this year, you can be sure that there will be no move toward debt mutualization until that event is out of the way.

EUR/USD is in recovery mode, now at 1.3319, just 15 pips or so below where we traded before Juncker said the euro FX rate is dangerously high.