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In section 2 Basics, third bullet under production [118], we read: In this case the local name and namespace URI are as written, and the prefix is absent. This way of writing a QName is context-free, which makes it particularly suitable for use in queries|expressions that are generated by software. This form is a . The last sentence is unfinished. Also, this paragraph fails to explain that if there is nothing between the curly braces, e.g. Q{}local, then the namespace URI is absent. Also, I suspect that "queries|expressions" should be "queries" in XQuery and "expressions" in XPath. Just above production [112] appears "In the XQuery|XPath grammar" which is probably the same problem.
Fixed.