Pace of oil price recovery will be important for Norges Bank's monetary policy in 2015: Danske Bank

Quotes from Danske Bank:

-Norges Bank figures released yesterday showed that foreign banks (proxy for speculative flows) net bought NOK in the week to 15 February worth a total amount of NOK40m.

-While this completes a five-week period of net NOK buying - after seven weeks of consecutive net selling - NOK purchases this week saw a noteworthy slowdown (last week foreign banks net bought NOK worth NOK6.5bn).

-The slowdown coincides with a reduction in speculative bullish oil bets (according to CFTC IMM data). This highlights the strong connection between the oil price and the NOK in the minds of speculators and indeed we believe that the pace of the oil price recovery will be important for Norges Bank's monetary policy in 2015.