• EUR/USD hovers around 1.0870, remains on defensive due to multiple headwinds.
• A few ECB policymakers remain comfortable with expectations of two more rate cuts.
• The US Dollar will dance to the tunes of a slew of US data.

The EUR/USD pair trades close to near immediate support of 1.0870 in Monday’s American session. The major currency pair remains on tenterhooks amid increasing speculation the European Central Bank (ECB) will cut interest rates two times more this year and a recovery move in the US Dollar (USD)

ECB policymakers see market speculation for two more rate cuts: one in September and the following in December as appropriate. ECB policymaker Francois Villeroy de Galhau said in an interview on French radio BFM Business, "Market expectations for the path of interest rates seem rather reasonable to me at the moment," Reuters reported.

Last week, the ECB left interest rates unchanged amid concerns that aggressive policy easing could spurt price pressures again. ECB President Christine Lagarde refrained from pre-committing a specific rate-cut path.