0757 GMT - The euro's decline over the past days reflects the cyclical outperformance of the U.S. versus the rest of the world, and in particular versus the euroarea economy, says Claudio Wewel at Bank J. Safra Sarasin. Concerns over French deficits and government debt have added to this, and France's political fragmentation should make it harder to find compromise and soothe the angst. "From a more technical perspective, there has been a close historical correlation between the spread of French over German government bond yields and EURUSD or EURCHF," he says. That largely explains why the euro has weakened against the greenback and the Swiss franc. Wewel expects things will go a bit further from here, but the euro's undershoot should be temporary as political compromise seems likely, especially given pressure from the EU.