The optics of the Binance purchase of FTX was on shaky grounds earlier today as chatter of potential improprieties sent the digital currencies lower including Bitcoin, Ethereum, Dogecoin and the FTX token FTT. Those worries became a reality when toward the end of the day Binance officially announced that:

  • As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged U.S. agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com

They added that FTX's

  • Issues are beyond our control or ability to help

That announcement pretty much "checkmated" any hopes for getting out of the quagmire that has seen the price of FTX's token move from $26.43 on November 1 to $1.73 today (trading at $1.94 now or down -92%).

Looking at the other digital currencies:

  • Bitcoin is trading at $16134.71, down -11.19%
  • Ripple is trading at $0.3421, down -13.83
  • Ether is trading at $1146.79, down -12.54%
  • Litecoin is trading at $51.60, down -$9.44

As for FTT, it is down -$3.53 or -65.04%...today.

forex
The strongest to the weakest of the major currencies

IN the forex market, the CHF and USD were the strongest of the major currencies. The GBP was the weakest. The GBPUSD fell -1.63%. The USD rose by 1.18% vs the AUD and 1.21% vs the NZD. The only blemish in the run higher was a near unchanged move vs the CHF. The move to the upside in the USD today is the first in 3 days.

Technically,

  • The EURUSD is closing back below the 100 day MA at 1.00365. The move above the 100 day MA lasted around 24 hours. That is a disappointment for traders. The low reached today below the 1.0000 parity level to 0.9992. IT trades at 1.0009 into the end of day. It would now take a move back above the 100 day MA again to give the buyers additional comfort. Conversely on the downside traders will be eyeing a swing area between 0.9965 to 0.9975. Below that is the rising 100 hour MA at 0.99583.
  • The USDJPY based a few pips from the October 27 low at 145.098 (the low reached 145.16). The move to the upside stepped up (with ups and downs) to the falling 100 hour MA. That MA currently comes in at 146.696. A move above the MA and a swing area up to 146.98 and the 200 hour MA at 147.27 are the next steps higher into the new trading day. On the downside, if the 146.15 level is broken, the sellers near the 100 hour MA will feel more comfortable
  • The USDCAD rebounded back into the swing area that confined the pair from September 27. Yesterday, the price moved away from that swing area (near 1.3500) to a low of 1.33867. However today, the price has moved back above the lower swing area between 1.3494 to 1.3510 and the 100 hour MA at 1.3524 as well. It will take a move back below the swing area near 1.3500 to give the sellers so hope. On the first move below, they failed.

In other markets:

  • Spot gold is down -$6.14 or -0.36% at $1705.84
  • Spot silver is down -$0.30 or -1.45% at $21.01
  • Crude fell sharply with a decline of -$3.11 or -3.51% at $85.56

In the US stock market, the major indices all snapped their 3 day win streak with near 2% and greater declines:

  • Dow fell -646.89 points or -1.95% at 32513.94
  • S&P fell -79.54 points or -2.08% at 3748.56
  • Nasdaq fell -263.02 points or -2.48% at 10353.19
  • Russell 2000 -48.52 points or -2.68% at 1760.40

Oh... Tomorrow the markets will be dealing with a true binary economic release when the CPI data is released at 8:30 AM. The expectations are for a gain of 0.6% for the headline and 0.5% for ex food and energy. A key, key release with risk sky high. So understand your risk.