CHF/USD Jumps 0.5% as SNB Cuts Rates to 0%, BOE Holds Steady

USD/CHF plunged 0.5% to 0.8920 after the Swiss National Bank unexpectedly cut interest rates by 25bps to 0%, marking a significant policy shift amid cooling inflation. The SNB cited subdued price pressures at 1.2% annually and concerns about franc strength impacting exports. Meanwhile, GBP/USD remained stable at 1.2650 as the Bank of England held rates at 5.25% as expected, with a 7-2 vote split showing persistent hawkish dissent. EUR/CHF surged 0.7% to 0.9680 on the SNB decision, while GBP/CHF gained 0.6% to 1.1290. The diverging monetary policies highlight Europe's fragmented economic recovery, with Switzerland prioritizing growth over inflation concerns. Technical analysis shows USD/CHF breaking below key support at 0.8950, opening downside toward 0.8850. Traders should monitor upcoming Eurozone inflation data, which could influence ECB policy and further impact CHF crosses amid the new rate differential dynamics.