Various currency pairs are likely to be highly volatile throughout the upcoming week due to a busy schedule of meetings and economic releases.

This week's economic calendar brings several important events that can have a significant impact, especially on the US dollar. Anticipating various surprises, the US Dollar Index (DXY) actually weakened by about 0.4%, touching its lowest level at 106.06 at the beginning of the New York session on Monday, October 30th.

USD today

The Bank of Japan (BoJ) started its policy meeting today. Most market participants expect that the announcement of the meeting's results tomorrow is unlikely to show significant differences compared to previous meetings, although there are still a few traders hoping that the BoJ may adopt a more hawkish stance.

USD/JPY briefly soared above the 150.0 threshold last week but has now retreated to around 149.00. It is not yet clear whether the decline in USD/JPY is due to normal market dynamics or Japanese government intervention.

Two other central banks will announce their policy meeting results this week, namely the US Federal Reserve on Wednesday and the Bank of England (BoE) on Thursday. Both are expected to leave interest rates unchanged, so the market will focus on their statements and accompanying press conferences.

Various important data releases will also influence the market, ranging from ISM PMI survey results, and Eurozone inflation, to US Non-farm Payrolls. The movement of various currency pairs is likely to be highly volatile throughout the upcoming week.

Helen Give an FX trader at Monex USA in Washington, said that while the US Dollar weakened slightly this morning, it is not to an extent that places it outside of the recent price range.

"If consumer data domestically hadn't been so strong last week, we'd probably be looking at a bigger slide for the dollar, but markets are still finding it quite difficult to discount the resilience of the U.S. economy," Helen added.

Reuters also reported that analysts believe a series of quarterly funding announcements from the US Department of the Treasury could impact the bond and currency markets. These announcements are intended to address concerns about rising budget deficits and interest costs.

The US Treasury will also announce the estimated funding requirements for the fourth quarter. If there are significant changes in the volume of government bond auctions to meet these funding needs, the bond market may become turbulent and affect the position of the US dollar in the forex market.