Analysts at Scotiabank explained that the early focus will be on the German election and the loss of support for the mainstream SPD and Merkel’s CDU versus the gains made by the rightist AfD. 

Key Quotes:

"However, the centrist FDP and Greens also picked up some ground and will likely figure in Merkel’s coalition building plans which may take some time to develop (4-6 weeks). 

The outcome may slow Germany’s drive for broader EU reforms down the road but does not really move the needle for the EUR in the shorter term, we feel.

ECB President Draghi’s comments to EU lawmakers today could easily overshadow the election outcome if the remarks renew expectations of ECB tapering."

"The EUR has fallen sharply over the weekend, leaving spot close to testing shortterm support in the 1.1855/65 area. Weakness below here will be a “heads up” warning that spot is heading for a test of key trend channel support in the low 1.18s (1.1825)."