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Sterling slips after Northern Irish lawmaker says no-deal Brexit is coming

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Sterling slips after Northern Irish lawmaker says no-deal Brexit is coming

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Traffic crosses the border into Northern Ireland from the Irish Republic alongside a Brexit Border poster on the Dublin road Co Armagh border, between Newry in Northern Ireland and Dundalk in the Irish Republic, on December 1, 2017.

PAUL FAITH | AFP | Getty Images

Traffic crosses the border into Northern Ireland from the Irish Republic alongside a Brexit Border poster on the Dublin road Co Armagh border, between Newry in Northern Ireland and Dundalk in the Irish Republic, on December 1, 2017.

Sterling fell sharply against the U.S. dollar on Tuesday morning after a politician, crucial to Theresa May’s grip on power, suggested that the U.K. is heading for a no-deal Brexit.

Shortly after 10.a.m. London time the pound fell from its session high of $1.308 to $1.302 as investors digested the remarks on Twitter from the Chief Whip of Northern Ireland’s Democratic Unionist Party (DUP), Jeffrey Donaldson.

“Looks like we are heading for no deal,” the lawmaker said, before adding “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.”

The DUP is crucial to the U.K.’s ruling Conservative Party as it provides Prime Minister Theresa May with the crucial votes that allow her to hold the balance of power in the British parliament.

Their whip hand over matters relating to Brexit is crucial as the border between Northern Ireland, which is part of the United Kingdom, and the Republic of Ireland, which is set to stay in the European Union, has become the major sticking point in negotiations with Brussels.

Source of this (above) article: https://www.cnbc.com/2018/11/06/sterling-slips-after-dup-says-no-deal-brexit-is-coming.html

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