BUZZ-COMMENT-FX fireworks on Jan 2 may set tone for 2025

Jan 3 (Reuters) - The foreign exchange year started with a bang on Thursday, less than three weeks before Donald Trump's White House return, in what might prove to be a taste of things to come in 2025.

Jan. 2 saw EUR/USD sink to its lowest level since November 2022, with cable posting its biggest daily loss in more than two years. Even the safe-haven franc was not immune, with USD/CHF vaulting 0.91 for the first time in eight months.

Hedge fund flow was suspected as a catalyst for the stop-loss selling which helped to juice the moves lower in EUR/USD and GBP/USD.

EUR/USD tripped stops below 1.0330 and 1.0300 en route to a low circa 1.0250. Cable fell by more than 1.75 cents from the London open, with stops tripped below 1.2475 (Nov/Dec low) en route to a nine-month low of 1.2353.

If the snowball keeps rolling, EUR/USD may even test 1.00 and GBP/USD 1.20 before Trump's Jan. 20 inauguration.

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(Robert Howard is a Reuters market analyst. The views expressed are his own)

((robert.howard@thomsonreuters.com))