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Loonie moves higher as euro zone exits recession

Canadian dollars.

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The loonie inched higher against the U.S. dollar Wednesday after the European Union said the longest recession in its history has ended.

The Canadian dollar closed up 0.14 of a cent at 96.82 cents (U.S.).

The EU statistics office reported that the 17 countries that use the euro saw economic output grow by 0.3 per cent in the second quarter. It's the first growth recorded since late 2011.

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Michael Smedley, a portfolio manager at Morgan, Meighen and Associates, suggested Europe's improved economic prospects should have a positive effect on the outlook for its economy for the coming months.

"You get a very slight show of confidence that has been absent for so long, the market will tend to feed off that a bit," he said.

"So you should get a continuation of moderate improvement in the overall economic state in Europe."

In commodities, the September crude contract reversed late in the session after moving lower for most of the day. The contract settled ahead two cents at $106.85 (U.S.) a barrel.

December gold bullion rose $12.90 to close at $1,333.40 an ounce. September copper increased two cents to $3.34 a pound.

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