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Sir Jeffrey's tweet triggers fall in sterling but Dominic Raab 'thumbs' up sees pound rally

Sir Jeffrey Donaldson's tweet was reported to have triggered a fall in sterling's value. Picture by Niall Carson/PA Wire
Sir Jeffrey Donaldson's tweet was reported to have triggered a fall in sterling's value. Picture by Niall Carson/PA Wire Sir Jeffrey Donaldson's tweet was reported to have triggered a fall in sterling's value. Picture by Niall Carson/PA Wire

A TWEET by DUP chief whip Sir Jeffrey Donaldson was yesterday linked to a fall in the value of sterling.

The Lagan Valley MP tweeted in the morning that it looked like Theresa May was “heading for a no deal” in the Brexit negotiations.

The social media post was reported by some of the major financial news services, including Reuters, the FT and CNBC alongside news that sterling had fallen by as much as 0.5 per cent against the US dollar on the news.

Sir Jeffrey's post was response to Tanáiste Simon Coveney's tweet in which he insisted the Dublin government or the EU would not accept a "time-limited backstop" or a backstop that could be ended unilaterally by the UK.

The Republic's foreign affairs minister added: “These ideas are not backstops at all + don’t deliver on previous UK commitments.”

Brussels has also rejected Brexit Secretary Dominic Raab's proposal to give Britain a unilateral right to pull out of the backstop proposal, which aims to avoid a hard border.

 Cartoonist Ian Knox's take on the border backstop conundrum
 Cartoonist Ian Knox's take on the border backstop conundrum  Cartoonist Ian Knox's take on the border backstop conundrum

Sir Jeffrey quoted the Fine Gael deputy leader's tweet and added: “Looks like we’re heading for no deal.”

Read more:

  • Brexit deal on Irish border is not close says EU chief negotiator Michel Barnier
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“Such an outcome will have serious consequences for economy of Irish Republic. In addition, UK won’t have to pay a penny more to EU, which means big increase for Dublin. Can’t understand why Irish Government seems so intent on this course.”

With the DUP propping up the Tories' minority government at Westminster, statements from the party's MPs carry weight and can influence international currency markets.

Brexit Secretary Dominic Raab arrives in Downing Street yesterday. Picture by John Stillwell/PA Wire
Brexit Secretary Dominic Raab arrives in Downing Street yesterday. Picture by John Stillwell/PA Wire Brexit Secretary Dominic Raab arrives in Downing Street yesterday. Picture by John Stillwell/PA Wire

However, the pound regained its morning losses later in the day in an apparent response to Brexit Secretary Dominic Raab giving reporters a “thumbs up” after a crucial cabinet meeting at Downing Street.

After falling to a low of US$1.3021 before lunch, sterling later recovered, rocketing to US$1.30810 after Mr Raab's gesture.