Market was expecting the FED chairman to save it from falling lower, unfortunately she disappointed the market. she mentioned the fact that the Federal reserve doesn’t have the power to impose a negative interest rate and there no reason to cut interest rate lower.
On the back of this, the stock market plunged to the downside and safe heaven rallied across the board. USDJPY dropped to 110 which is the lowest level since 2007, Eurusd touched the 1.13 level, Gold also rallied above the $1200 resistance level and oil price dropped to $26.
With increasing level of uncertainty regarding the European banks, Market might still go further to the downside until the ECB intervenes.