Fed on track for December after nonfarm payrolls - Scotiabank

Analysts at Scotiabank explained that they think U.S. September jobs report keeps the Fed on track for December rate hike, while the subdued print ensures the U.S. central bank will stay on hold in early November.

Key Quotes:

"Fed Funds Futures implied odds of a rate rise in December remained steady at around 65%, but the likelihood of a November hike dropped 6.5 percentage points to 17.1% only from 23.6% the previous session.

The U.S. added 156,000 new jobs last month after a 167,000 gain that was upwardly revised from a preliminary 151,000 increase in August. Although the unemployment rate ticked up to 5.0%, the labor-force participation rate rose 0.1 percentage point as well to 62.9% in September from a month earlier. We see signs of optimism among U.S. prospective workers."