* Canadian dollar strengthens 0.4% against the greenback * Loonie touches its weakest since June 21 at 1.2449 * Canada posts a trade deficit of C$1.39 billion in May * Price of U.S. oil rises 0.2% TORONTO, July 2 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Friday as oil rose and investors weighed data showing a pickup in U.S. employment, with the currency recovering from an earlier 11-day low. The loonie was trading 0.4% higher at 1.2382 to the greenback, or 80.76 U.S. cents, the biggest advance among G10 currencies. The currency touched its weakest intraday level since June 21 at 1.2449. U.S. job growth accelerated in June as companies, desperate to boost production and services amid booming demand, raised wages and offered incentives to draw millions of reluctant unemployed Americans back into the labor force. Canada sends about 75% of its exports to the United States, including oil. U.S. crude oil futures were up 0.2% at $75.38 a barrel as OPEC+ ministers delayed an output policy meeting. Sources said the United Arab Emirates had balked at proposals that included raising supply by 2 million barrels per day (bpd) by the end of the year. Canada posted a trade deficit of C$1.39 billion in May, as imports increased while exports fell, Statistics Canada said. Analysts had predicted a surplus of C$370 million. Separate domestic data showed that the value of building permits fell 14.8% in May from April. The loonie will strengthen over the coming year, bolstered by higher oil prices and reduced stimulus from the Bank of Canada, but gains could stop short of the currency"s recent six-year high near 1.20, a Reuters poll showed. Canadian government bond yields fell across a flatter curve, tracking the move in U.S. Treasuries. The 10-year was down 2.4 basis points at 1.364%, near the bottom of its range since March. (Reporting by Fergal Smith; editing by Jonathan Oatis) Our Standards: The Thomson Reuters Trust Principles.