GOP kneel over to Democrats on debt ceiling -> Geithner continue to print Treasury. Bernanke continue to print dollar and blow balance sheet and dollar bubble. USA gov continue to blow deficit bubble. USA dollar and paper asset all a joke.
"Why" you ask? Short covering....just look at the RSI. When there's no one else to sell, someone has to cover. We all know every hedge fund and his dog was short the US$. Well, we get an oversold tape coupled with dovish language from Europe + fears out of Greece + margin calls in commodity trade (paired with short US$). Perfect storm. The fact it was this fierce a rebound proves it was short covering.
Doesn't have to continue higher, but for the short term, at least, the downside in US$ is over.