The weakened demand for US assets may lead to the euro rising against the dollar.

Pimco analysts stated in a report that the euro may rise against the US dollar, but this is more due to the weakness of the dollar rather than a strengthening of the euro itself. They pointed out that the US-EU trade agreement could weaken the economic growth of the eurozone due to a 15% tariff on the EU. However, as changes in US policy may alter global demand for US assets, a weaker dollar could still benefit the euro. They also indicated that as global investment portfolios gradually shift towards more diversified risk asset allocations, the trend of global de-dollarization is expected to continue, and the market share of the dollar in cross-border payments may continue to decline.