The Greek deficit problem is very serious and could have potential spill-over effect on the euro-zone. He did not rule out imposing fines on those who disregard budget caps.

Also crossing the wires, Canadian FinMin Flaherty refused to comment on the forex “pact” between Japan’s Kan and Geithner, reported by Kyodo earlier today.

EUR/USD found bids at 1.4505 after pulling back from 1.4557 highs just ahead of the 16:00 GMT fixing.

Oil is trading lower in early afternoon, now down to $82.30 after stalling at $83.95 while gold is about $10 below $1161.50 highs.