Epilobium watsonii; American willowherb is an alien that has settled around Reykjavik (I saw his species both in Reykjavik and near Mosfellsbær) and other urban areas of the south-western regions of Iceland. This willow herb can be recognized by the leaf shape: strongly dented margins and a tapered top.
It is a member of the Willowherb family (Onagraceae).