06:23 AM EDT, 09/08/2025 (MT Newswires) -- Most major currencies strengthened against the US dollar (USD) Friday after a weak United States labor market report, Commerzbank said.

The exception was the Canadian dollar (CAD or loonie), which depreciated slightly against the greenback. By contrast, the euro (EUR) gained more than 0.5%, while the Swiss franc (CHF) rose nearly 1%, the bank noted in a client report.

Commerzbank said the Canadian labor market performed even worse than that of the US. Canada lost nearly 65,000 jobs in August, following a drop of 40,000 in July. That more than offset June's positive outlier, and on average the country has shed almost 6,000 jobs per month over the past six months.

No other country is likely to be affected by U.S. trade policy as much as Canada, according to the bank. In June and July, the Bank of Canada held back on monetary policy moves because of uncertainty about the impact of tariffs on inflation.

With two weak labor reports, however, Commerzbank said another interest rate cut is likely next week, and the Canadian dollar is expected to face further pressure.