0725 GMT - The euro could stabilize against the dollar this week as its recent decline looks somewhat overdone, ING's Francesco Pesole says in a note. "We have a preference for the euro to inch back higher and stabilize just above $1.140, but we aren't blind to the lingering downside risks." Among the risks are French government bonds, where a further widening of yield spreads could start to impact the euro, he says. Meanwhile, eurozone inflation data on Friday could show headline inflation accelerated on energy prices in September but core inflation increased only modestly, confirming no sign of second-round effects. Still, the European Central Bank should continue to favor further interest-rate rises, he says. The euro falls 0.2% to $1.1374.