If you place the wire near a permanent magnet, this temporary magnetic field interacts with the permanent magnet field. You will know that two magnets placed near one another either attract or repel. In the same way, the temporary magnetism around the wire attracts or repels the permanent magnetism from the magnet, and that is what causes the wire to jump.
If the coil of wire could carry on moving like this, it would rotate continuously—and we did be well on the way to making an electric motor. But that ca not happen with our present setup: the wires will quickly tangle up. Not only that, but if the coil could rotate far enough, something else would happen. Once the coil reached the vertical position, it would flip over, so the electric current would be flowing through it the opposite way. Now the forces on each side of the coil would reverse. Instead of rotating continuously in the same direction, it would move back in the direction it had just come! Imagine an electric train with a motor like this: it would keep shuffling back and forward on the spot without ever actually going anywhere.