GBP/USD strengthens above 1.3305 as investors await Fed board appointee

• GBP/USD gains ground to around 1.3305 in Wednesday's Asian session. 
• Trump said he will decide on the Fed governor's replacement by the end of the week. 
• BoE is expected to lower its base rate by 25 bps to 4.00% at its August meeting.

The GBP/USD pair trades on a positive note near 1.3305 during the Asian trading hours on Wednesday. The Greenback softens against the Pound Sterling (GBP) as traders await US President Donald Trump's pick for a vacancy on the Federal Reserve's (Fed) Board of Governors.

The US July jobs report showed weaker-than-expected job growth, increasing the likelihood of a Fed rate reduction in September. According to the CME FedWatch tool, rate futures are now pricing in nearly a 91% possibility of the Fed cutting rates at the September meeting, compared with 35% a week earlier. They also indicate 60 basis points (bps) of reductions by end-December and 130 bps in rate cuts by October 2026.

Traders will closely monitor the developments surrounding the potential Fed Chair. Trump said on Tuesday that he has narrowed the field of potential future Fed chairs to four candidates, a list that does not include US Treasury Secretary Scott Bessent. Additionally, Trump noted that he will name a replacement for Fed Governor Adriana Kugler by the end of the week.

On the GBP's front, the Bank of England (BoE) interest rate decision will be in the spotlight on Thursday. The BoE is widely anticipated to cut its key interest rate to 4.0% from 4.25% at its August meeting to prevent the economy from sliding backwards amid rising unemployment and the hit to global trade from US tariffs. The BoE's Governor Bailey speech will be closely watched as it might offer some hints about the UK interest rate outlook. Any dovish remarks could undermine the Cable in the near term.