EUR/USD surrendered intraday gains and returned below the psychological 1.0500 level in the European session on Monday as a large number of European Central Bank (ECB) policymakers, including President Christine Lagarde, have supported further policy easing and a gradual move towards the neutral interest rate, which they expect to be around 2%.

"Will cut interest rates further if incoming data confirm that disinflation is on track," Lagarde said at the Annual Economic Conference in the European session on Monday. Lagarde's dovish remarks on the policy outlook were supported by the assumption that "Inflation momentum for services has fallen sharply recently."

Source; FXStreet