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Economy November 3, 2021

EUR/GBP pulls back from 0.8500, assessing a test of 21 DMA



  • EUR/GBP has retreated below the 0.8500 level and is considering a test of its 21 DMA at 0.8465.
  • The main driver of the cross this week will be Thursday’s key Bank of England meeting.

EUR/GBP has fallen back below the 0.8500 level on Wednesday after flirting with the key resistance area in recent days. The catalyst for the move down from above 0.8500 to current levels below 0.8480 is unclear.

This morning, IHS Markit released its UK services PMI survey for October. And it was revised up from the preliminary estimate released last month, which some believe is helping sterling this morning.



Members of the ECB today had subdued comments, rejecting the idea of raising rates in 2022. Which contrasts sharply with Bank of England rate hike expectations on Thursday this week.

Whatever the reason for the decline, EUR/GBP is now testing support in the form of the October 28 high at 0.8475, with a possible test of its 21-day moving average at 0.8465 next.

The main driver for the pair for the rest of the week will, of course, be the aforementioned BoE meeting on Thursday. Markets are uncertain whether the bank will raise rates or not, as well as how the rate hike vote will be split. The higher than usual degree of uncertainty about this meeting means that FX market reaction could be oscillating and go both ways.

ECB rejects aggressive market pricing

So far on Wednesday, several ECB policymakers have made public statements. After being reprimanded last week for not rejecting money. Market pricing for rate hikes in 2022 as forcefully as markets expected. ECB President Christine Lagarde was a bit more explicit on Wednesday, resulting in volatile conditions in currency and bond markets.

It is unlikely that the ECB will meet its conditions (i.e. inflation above the bank’s 2.0 percent target and expected to remain there for the duration of the forecast period) before raising interest rates. According to Lagarde, who added that the eurozone economy would require support even after the pandemic is over next year. She also stated that the medium-term inflation outlook remains bleak.

Three-month Euribor December 2022 futures, which fell to 100.155 last Friday (implying that markets were pricing in up to 50bp of ECB rate hikes by the end of 2022), have now recovered to around 100.30, implying a rise of more than 30bp by the end of next year.

If ECB policymakers are correct, this could recover to around 100.50. (implying no hikes). This would likely weigh on the euro, but currency markets are currently focused on the upcoming Fed meeting.

Brexit, trolling war

Brexit is still in the news; UK Prime Minister Boris Johnson recently stated that the UK wants “substantial” changes to the existing Northern Ireland Protocol.

Political analysts anticipate that the UK will soon invoke Article 16, which allows the UK to take unilateral action on the agreement if it believes that the protocol’s implementation will have serious negative consequences. EU leaders have warned the UK not to take that step, as it could lead to more tense negotiations on trade and legal issues, as well as jeopardizing the ongoing fisheries dispute between the UK and France.

However, the tone of the news on the latter dispute has improved in recent days after the French decided not to impose retaliatory measures on UK overfishing access and French government ministers recently praised the UK government’s constructive approach to fisheries discussions.

Michelle D. Madsen graduated from the University of Westminster and has been deeply involved in the world of finance ever since. She has worked as a Broadcast Journalist hosting various news shows and informative webcasts about the financial markets. Since 2004 she has also been writing for MetaNews daily, her attention to detail, and her in-depth knowledge of the financial markets have led her to cover Foreign Exchange and commodities. The world of finance has changed in the last few years with the introduction and rising popularity of cryptocurrencies and the Metaverse. She has in no means been left behind, adding this to her bank of intellect and is now also an expert in cryptocurrencies. For the last ten years, Ms. Madsen has been engaged in the financial market. She has notedly written a great number of incredibly informative reviews for the crypto, NFT and the Metaverse. Her wealth of knowledge has enabled her to become a leading expert in the field. She continues to inform the public writing up-to-date, thorough reviews for the readers of MetaNews as she has for the last decade.

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Microsoft clearly engages in the metaverse using Q2 earnings call



Satya Nadella, CEO of Microsoft, revealed his vision for the metaverse at the company’s Q2 2022 earnings call.

Overall, the company’s Q2 2022 filing showed a significant increase in cloud-based services. Microsoft reported $51.7 billion in revenue, a 20% increase over the previous year. Intelligent Cloud revenue was $18.3 billion, a 26 percent increase over the previous year. Azure drove a 29 percent increase in sales for server goods and cloud services. As well as a 46 percent increase in revenue for other cloud services.



Among the trends noted by Nadella on the earnings call was a “structural shift in PC demand.”

According to Microsoft CFO Amy Hood, Windows revenue from PC manufacturers increased by 25%, which was “far over expectations”. She stated that demand was being driven by the PC market’s success, particularly in the commercial category.

According to an earnings call transcript obtained on the financial blog site Seeking Alpha, Nadella envisions the metaverse as the next wave of the Internet. “Just as the initial wave of the Internet has allowed anyone to construct a website, I believe the next wave of the Internet will be a more open world where people, whether companies, game developers, or anyone else, may create their own metaverse world,” he stated.

“The first place we see this is the increasing digitization of people, places, and things to truly enable organizations automate operations at the next level,” he explained. “So, today, we have a number of examples of customers engaging with us through Azure IoT, Digital Twins, and Mesh. So that’s what you’ll see in Azure, and we’re investing heavily on it.”

Nadella sees prospects for Dynamics 365 Connected Spaces further up the software stack. This in-development technology is to control physical operations in physical areas such as a store, a connected factory, or a building. “We now have a suite that powers entirely by connected spaces,” he explained. Microsoft’s goal, he noted, is to automate physical operations.

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Economy introduces its wearable NFTs in the metaverse


on, the industry-leading 3D fashion technology company, has launched a new innovative offering that enables designers to become metaverse-capable creators. In addition this latest step extends the company’s solutions into the world of digital fashion and NFTs. Moreover building on its growing success in virtual fitting and styling.


The company mints and distributes fashion NFTs creates and distributes fashion NFTs, allowing people to wear, share, and use them across the metaverse. In addition, the company gives its partners the ability to bring their physical collections into the digital realm through bespoke “phygital” experiences.

The company’s plug-and-play technologies will allow metaverse projects to make digital fashion accessible to their communities. New experiences, such as virtual runway presentations, exhibitions, and live events, will be possible for designers and companies., with its 3D and AR technologies, is at the forefront of making digital fashion more accessible

Fashion NFT utilities are now limited, and is at the forefront of making digital fashion more accessible with its 3D and AR technology.’s President, Rufus Parkinson, stated. “’s mission has been to enable consumers to see and interact with fashion in the digital environment since its inception. We believe that digital fashion and NFTs will alter the industry by allowing us to leverage our patented technology to open up a new dimension of user experiences.”

Combined with blockchain technology and the rapid expansion of the metaverse, digital fashion will explode in the next few years. Morgan Stanley estimates that the premium digital fashion sector alone will reach $20 billion by 2030.’s goods are already in high demand, with consumption rising 386 percent in the last year, and this additional fashion NFT offering offers up even more prospects for growth in the digital fashion industry.

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Metaverse: Tencent is updating QQ with the Unreal game engine



According to an upgraded version of the program, Tencent Holdings has stealthily integrated the Unreal Engine video game engine into its increasingly obsolete QQ messaging network. Hence, analysts believe the move is part of the social media and gaming giant’s entrance into the metaverse.

metaverse tencent

According to LibChecker, a third-party app inspection tool, the Shenzhen-based company updated QQ last month. The new version, which was formerly a chat app, includes portions of the Unreal Engine video game engine.

Tencent launched a new app feature called Super QQ Show, which is a 3D interactive arena where users can socialize, watch shows, and play games, at the same time as the update. As a result, observers claim the move is Tencent’s latest attempt to establish a footprint in the metaverse.

Resuscitating QQ.

The decision also demonstrates Tencent’s commitment to resuscitate QQ, its second most popular messaging platform behind WeChat with 590 million monthly active users, which had fallen out of favor in recent years as Chinese netizens shifted their attention to short videos and other platforms.

In China, the metaverse is gaining traction. Although the country has not yet developed a national plan for the concept, like South Korea has, officials in some key cities have pushed businesses to investigate it. For example, one of four frontiers to explore in Shanghai’s future five-year plan is the metaverse.

The Super QQ Show is currently under testing by a small number of users. Tencent staff uploaded screenshots and video footage of the functionality. Which shows players dressing up their avatars in 3D, decorating their homes, and visiting others. Thus similar to Nintendo’s Animal Crossing video game franchise.

The Unreal Engine is utilized in successful games such as Bioshock and Mass Effect. Tencent owns a 40% share in Epic Games, which operates the engine in the United States. Last year, Epic Games was one of the first worldwide tech behemoths to make metaverse development a top priority. Epic’s flagship game, Fortnite, considered as one of the market’s leading metaverse initiatives.

For MetaNews.

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