GBP/USD holds below 1.3000 after BoE/Fed rate decision

• GBP/USD loses ground to near 1.2975 in Friday's Asian session. 
• The Fed cuts interest rates by a quarter point at the November meeting, as widely expected. 
• The BOE decided to cut the benchmark rate to 4.75% at its November meeting on Thursday.

The GBP/USD pair edges lower to around 1.2975 during the Asian trading hours on Friday. The Pound Sterling weakens after the Bank of England (BoE) reduced its interest rates by 25 basis points (bps) on Thursday. Traders will take more cues from the advanced US Michigan Consumer Sentiment data and the Federal Reserve's (Fed) Michelle Bowman's speech later on Friday.

After a jumbo half percentage point reduction in September, the Federal Open Market Committee (FOMC) lowered its benchmark overnight borrowing rate by a quarter percentage point to a target range of 4.50%-4.75% at its November meeting on Thursday. Fed officials have justified the easing mode for policy as they view supporting employment as becoming at least as much of a priority as arresting inflation.

Expectations for a December interest rate cut remained strong after the Fed cut its rates in November. The chance of a quarter-point December rate cut rose to more than 68% following the Fed meeting, while the odds of a pause dropped to nearly 32%, according to the CME FedWatch Tool.

On Thursday, the Bank of England (BoE) cut interest rates by 25 bps while raising its inflation forecast. This comes after Labour's released UK budget, which casts doubt on future policy easing. The UK central bank has trimmed the interest rate for the second time this year after it began its easing cycle in August. BOE Governor Andrew Bailey said during the press conference that the central bank needs to retain a "gradual approach" to policy easing.