US Dollar Index (DXY) languishes below 97.00 with all eyes on US payrolls data 

• The Dollar remains depressed near long-term lows, unable to return above 97.00.
• Weak ADP data released on Wednesday heightened hopes of Fed cuts and capped the US Dollar's recovery.
• A moderate optimism after the US-Vietnam trade deal has added pressure on the safe-haven USD.

The US Dollar Index (DXY), which measures the value of the Dollar against the world's six most traded currencies, keeps wavering below the 97.00 area, unable to take off from multi-year lows, after having lost more than 2% during the last two weeks.

Wednesday's recovery attempts were capped at the 97.10 area, a support level in late June, now turned resistance, as the Dollar retreated again following a downbeat US ADP employment report that boosted hopes of imminent Fed cuts.

ADP Employment data disappoints and boosts Fed easing hopes

ADP data revealed the first net loss of employment in more than two years, with a net loss of 33,000 private payrolls in June, against market expectations of a 95,000 increase and following a downwardly revised 29,000 increment in May.

A firm Powell and strong jobs data support the USD.

Beyond that, Trump's announcement of a trade deal with Vietnam, whose details are scarce, boosted hopes of more such deals ahead of the July 9 deadline and increased pressure on the safe-haven US Dollar.

Investors, however, are wary of placing directional bets on the US Dollar ahead of the US Nonfarm Payrolls report, due later today. US payrolls are expected to have increased by 110,00 in June after a 139,000 rise in May. Another downbeat report today might confirm expectations of Fed cuts in July and September and send the US Dollar to new lows.