FX markets have steadied in Europe today after a particular nasty start to the week in early Sydney. EUR/USD has held around 1.3600 for the last two hours after failing to take out 1.3700 (high 1.3699) on the European open. The financial market TV programs have been awash with Euro skeptics talking down the weekends EU Euro 30bln rescue loan yet EUR/USD is still up around 100 pips from Fridays NY close. Short covering has been the order of the day with Euro flows dominating trading across all major pairings.