GBP/USD holds steady above 1.3250 as investors brace for US ISM Services PMI release

• GBP/USD flat lines around 1.3280 in Tuesday's Asian session.
• Traders are now pricing in a 94% possibility of a Fed rate reduction in September. 
• The BoE is scheduled to announce its monetary policy decision on Thursday.

The GBP/USD pair trades on a flat note near 1.3280 during the Asian trading hours on Tuesday. Nonetheless, rising odds of Federal Reserve (Fed) rate cuts could weigh on the US Dollar (USD) against the Cable. Investors will keep an eye on the US ISM Services Purchasing Managers Index (PMI) data, which is due later on Tuesday.

Soft US job data released on Friday prompted investors to ramp up bets of imminent Federal Reserve (Fed) rate cuts, which undermine the Greenback. The US employment growth undershot expectations in July, and the Nonfarm Payrolls (NFP) count for the prior two months was revised down by a massive 258K jobs, indicating a sharp deterioration in US labor market conditions. 

Markets are now pricing in nearly a 95% odds the Fed will ease rates next month owing to the weaker-than-expected US employment data, with over 63 basis points (bps) worth of cuts expected by December, according to Reuters. 

The Bank of England (BoE) interest rate decision will take center stage on Thursday. The UK central bank is widely expected to cut interest rates at the August meeting to prevent the economy from sliding backwards amid rising unemployment and the hit to global trade from US tariffs. 

Financial markets have priced in more than an 80% chance of BoE rate cuts at the August meeting and are penciling in a further quarter-point reduction before the end of the year. Traders will closely monitor the BoE's Governor Bailey speech after the monetary policy meeting. Any dovish remarks could drag the Pound Sterling (GBP) lower in the near term.