EUR/USD has room to rise underpinned by Germany's elections and upbeat market mood

EUR/USD is above 1.17. In the view of FXStreet’s Analyst Yohay Elam, the euro is set to rise as the market mood remains upbeat after the SPD came on top in Germany's elections and as the Evergrande crisis is moving out of sight.

The Evergrande crisis, Fed speakers and Durable Goods Orders are set to move markets

“The race to succeed long-serving Chancellor Angela Merkel has resulted in a fragmented parliament with finance minister Olaf Scholz leading the race to inherit the top job. The center-left candidate is moderate. Overall, the results are mostly as expected and provide hope for a euro-positive coalition.”

“The safe-haven dollar will likely remain on the back foot as the Evergrande crisis gradually leaves the spotlight. China's second-largest property developer is unlikely to pay all its debt, but would probably squeeze in an orderly fashion.”

“Investors feel comfortable with the Federal Reserve's upcoming tapering of bond buys announced last week. Fed members Lael Brainard, Charles Evans and John Williams will likely reiterate messages conveyed last week. Chair Jerome Powell testifies on Tuesday.”

“US Durable Goods Orders data for August could rock markets amid mixed economic figures from the world's largest economy. The economic calendar is pointing to an increase, in line with robust retail sales but in contrast to weak jobs data.”