USD/CHF plunges to 0.8950 as SNB cuts rates to zero amid franc strength

USD/CHF has tumbled 1.2% to 0.8950 following the Swiss National Bank's aggressive 50 basis point rate cut to 0%, surprising markets expecting a smaller reduction. The dramatic policy move aims to counter excessive franc appreciation that threatens to undermine Switzerland's export-dependent economy and GDP growth prospects. Gold prices have surged 0.8% to $2,655 per ounce, benefiting from both dollar weakness and increased safe-haven demand amid monetary policy divergence. The SNB's decision marks a return to zero interest rates, signaling serious concerns about deflationary pressures and economic slowdown. Technical indicators show USD/CHF breaking below crucial support at 0.9000, with next targets at 0.8920 and potentially 0.8850 if selling pressure persists. The franc's strength reflects its traditional safe-haven appeal despite negative rates, while traders position for potential SNB intervention if appreciation continues threatening economic stability.