Ethnic Jews people. In his prayer, in the first parts of Daniel 9, Daniel confessed (verse 4) that his people as a group had sinned against God (verse 5) and all Israel had transgressed God's laws of the Mt Sinai covenant (verse 11).
The covenant to be confirmed in Daniel 9:27 is the Mt. Sinai covenant, by the prince that shall come, in the role of the Antichrist, King of Israel, thought-to-be messiah by the ethnic Jews in the last days - for a while. Then, after that erroneous experience, the ethnic Jews will turn to Jesus and the gospel of salvation in the middle part of 7 years, Revelation 12:10.
While Daniel prayed, no doubt his mind and prayers were for those ethnic Jews who were in captivity through disobedience toward God in transgressing against the Law. Daniel desired to know what would physically become of them since Daniel "
understood by books the number of the years, whereof the word of the LORD came to Jeremiah the prophet, that he would accomplish seventy years in the desolations of Jerusalem." Daniel knew the seventy literal years of captivity was ending and he desired to know what would come of them.
From verses 22-27 the words are not part of Daniel's prayer, they are the words spoken by Gabriel, sent by God to give Daniel understanding of prophecy of what would come to pass far beyond the time of Daniel. God didn't send Gabriel to Daniel specifically to tell him about what would physically become of them. God has a far greater purpose and promise for sending Gabriel to show him what was to come to pass through the promised Messiah/Savior (Messiah the Prince) the prophets foretell would come.
Unlike Daniel, Gabriel speaks of "thy people" for whom the prophecy is to be fulfilled, not as a physical ethnic Israel, but as of a spiritual people of Daniel called "Israel of God." The prophecy foretold according to the Covenant promise of God to Abraham, as well as from the days of Noah was never for ethnic Israel alone, it has always been to people from all the nations of the world.
So, whether or not Daniel understood "thy people" as being Jew & Gentiles of faith together, called "Israel of God" really doesn't matter. Because the everlasting Covenant of redemption through the Messiah Savior or Messiah the Prince who was to come has never been only for the Jews, but from the beginning has been unto all who believe in Him upon the whole earth.
Genesis 9:16 (KJV) And the bow shall be in the cloud; and I will look upon it, that
I may remember the everlasting covenant between God and every living creature of all flesh that is upon the earth.
Genesis 12:3 (KJV) And I will bless them that bless thee, and curse him that curseth thee: and
in thee shall all families of the earth be blessed.
Daniel 9:20-21 (KJV) And whiles I
was speaking, and praying, and confessing my sin and the sin of my people Israel, and presenting my supplication before the LORD my God for the holy mountain of my God; Yea, whiles I
was speaking in prayer,
even the man Gabriel, whom I had seen in the vision at the beginning, being caused to fly swiftly, touched me about the time of the evening oblation.
Daniel 9:22-27 (KJV) And
he informed me, and talked with me, and said, O Daniel, I am now come forth to give thee skill and understanding. At the beginning of thy supplications the commandment came forth, and I am come to shew
thee; for thou
art greatly beloved: therefore understand the matter, and consider the vision. Seventy weeks are determined upon thy people and upon thy holy city, to finish the transgression, and to make an end of sins, and to make reconciliation for iniquity, and to bring in everlasting righteousness, and to seal up the vision and prophecy, and to anoint the most Holy. Know therefore and understand,
that from the going forth of the commandment to restore and to build Jerusalem unto the Messiah the Prince
shall be seven weeks, and threescore and two weeks: the street shall be built again, and the wall, even in troublous times. And after threescore and two weeks shall Messiah be cut off, but not for himself: and the people of the prince that shall come shall destroy the city and the sanctuary; and the end thereof
shall be with a flood, and unto the end of the war desolations are determined. And he shall confirm the covenant with many for one week: and in the midst of the week he shall cause the sacrifice and the oblation to cease, and for the overspreading of abominations he shall make
it desolate, even until the consummation, and that determined shall be poured upon the desolate.
When we read the prophecy, remembering the everlasting Covenant promise of God to mankind, it's clear "thy people" are all people of faith, like that of Noah, Abraham, and Daniel.