GBP/USD holds below 1.3200 ahead of US NFP data

• GBP/USD trades in negative territory around 1.3195 in Friday's Asian session.
• BoE is likely to cut the bank rate to 4.0% from 4.25% next week.
• Trump kept the minimum global tariff rates at 10%. 

The GBP/USD pair extends the decline to near 1.3195 during the Asian trading hours on Friday. The Pound Sterling (GBP) edges lower against the Greenback due to rising expectations of the Bank of England (BoE) rate cut next week. Investors brace for the US July employment data, including Nonfarm Payrolls (NFP) and the Unemployment Rate, which will be published later on Friday. 

The Cable remains under selling pressure amid escalating price pressures and cooling labor market conditions. BoE's policymakers cut its benchmark rate by 25 basis points (bps) at the May meeting, and analysts expect a similar outcome on August 7. Money markets indicate there is an 89% odds that the BoE will lower borrowing costs in August, according to Reuters. 

On the other hand, US President Donald Trump imposed new tariff rates on dozens of trade partners, which provides some support to the US Dollar (USD) and creates a headwind for the major pair. The White House late Thursday announced that Trump will set a baseline tariff rate of 10%. Additionally, Trump has signed an executive order increasing the tariff on Canada from 25% to 35%, effective on August 1, 2025. Trump extended Mexico's current tariff rates for 90 days to allow more time for trade negotiations.

All eyes will be on the US employment report later on Friday. Economists forecast the employment growth slowed to 110,000 new jobs in July, while the Unemployment Rate is expected to rise to 4.2% during the same period. In case of a weaker-than-expected outcome, this could undermine the USD against the GBP in the near term.