CIBC Research reacts to the  US and Canada October job reports

"The US labour market bounced back to life in October. October nonfarm payrolls jumped to 165K, higher than the consensus expectation of 70K. September was also revised higher to 60K from 29K previously. The unemployment rate declined to 4.1% in October from 4.2% in September.

This report suggests that the labour market remains near full employment in the US, which should free up the Fed to continue to focus on the inflation fight. We continue to believe the Fed will deliver a 25 bps hike in their December meeting," CIBC notes.

"While the Canadian Labour Force Survey is notoriously volatile, three monthly declines in a row is a trend that is hard to ignore. The -5K change in employment was below the consensus forecast for a +15K gain, with sector breakdown showing a large decline (-29K) in wholesale and retail trade. T

 While there's one more LFS report due for release before the Bank's December meeting, the recent trend in the labour market suggests that slack is opening up again in the economy and supports a hold at that time," CIBC adds.