Following his meeting with the UK Foreign Secretary Liz Truss on Monday, the Democratic Unionist Party (DUP) leader Sir Jeffrey Donaldson said that the British government must outline a timetable for how and when changes will be made to Northern Ireland (NI) Protocol.

Key quotes

“Told the foreign secretary, the UK's new lead negotiator with the EU in post-Brexit talks, that the government must guarantee there will be no checks on goods traveling from Great Britain that will stay within Northern Ireland.”

"For our part, we will use all measures at our disposal to continue to oppose the implementation of the current arrangements flowing from the protocol and we have made it clear to the government that we will not be implementers of protocol arrangements.”

"Balance can only be restored when Northern Ireland's place within the UK internal market is restored and the damaging protocol consequences are reversed.”

These comments come after Truss said on Sunday, she will not accept a deal which means goods from Britain being checked as they enter Northern Ireland.

Market reaction

GBP/USD is trading better bid near 1.3590, benefiting from a broad US dollar pullback, as the Treasury yields correct from two-year highs.  

Markets have ignored the stalemate on the Brexit front lately, as the Fed sentiment remained the main market motor. However, the further upside could remain capped amid looming Brexit concerns while the UK makes progress on tackling the Omicron covid spread.

• Explainer: Where next for GBP/USD and when it could tackle the 1.3150-1.32 support zone