Dollar retreats mildly as European stocks recover from early losses while US equities also open slightly higher. There is little reaction to poor manufacturing data from US which saw Empire State Manufacturing index dropped sharply from 31.9 to 19.1 in May. TIC report showed net buying of long term US securities rose sharply to $140.5b in March, largest number since last November. The data can be viewed as a sign of increased demand for US investments on optimism for economic recovery, as well as worry on problems in other parts of the world, including the fiscal debt woes in Eurozone.