 Good morning from the Frankfurt office of CMC markets and welcome to CMC Espresso According to a Reuters report the European Central Bank would publicly pledge to backstop financial markets in tandem with the Bank of England should Britain vote to leave the European Union, but If you look at the ECB, it is limited in what it can really do to stabilize already fast-dropping chairs of banking stocks Stocks they would need to be able to tackle the solvency problem of banks or at least the assumption of it Providing banks with ever more liquidity where there is already ample amounts of it won't really be helpful But they might find a new trick to do it and they will hold a telephone conference on a day after the referendum So in the morning hours of the 24th of June to talk about what they can do According to quant analysts from JPMorgan the rally and equities in the past weeks does not have much justification in Fundamentals or investors psychology those gains were significantly driven by inflows from systemic strategies They write this technical buying is now exhausted and leverage in the system is high And so from a perspective of options pricing JPMorgan now expects higher realized volatility in the near future Pension funds hedge funds corporates over buybacks retail investors and foreign investors are less likely to provide Significant support for the market near term about $1,000 billion of S&P 500 options will expire this week Those options are weighing more to the put side so to the downside and this could push volatility higher near term According to JPMorgan if you take a look at yesterday's US import prices, it's quite interesting To see them going up alongside better than expected retail sales data This could pressure the Federal Reserve to high rates if only after the Brexit referendum But this could cap the potential for a rally in stocks In the summer months to come and it will also cap any upside potential for euro dollar Which has retraced quite far as you get to keep in mind that it shouldn't retrace more than 76.4% of the NFP rally it had one and a half weeks ago so If it were to go down more than 76.4% this wouldn't be an impulse to the upside it would merely be a So the impulse would more be a correction and we could be in a new downside impulse on the euro dollars I keep that in mind, but there will be more on this on the Fed's view on the Rate policy at today's Fed meeting which will be close with a press conference by Jenna Deyala the Fed's president It will be interesting to hear what she has to say about the recent market turmoil The Brexit fears not so if and when she thinks it will be feasible to hike rates