EURCNH definition

EUR/CNH is the euro measured against the offshore Chinese renminbi, showing how many offshore yuan one euro will buy. The "CNH" is the freely traded offshore version of the renminbi, distinct from the tightly controlled onshore CNY, and this cross trades with fair but second-tier liquidity, so its spreads are wider than those of a core major.

The euro is the base currency and the offshore renminbi the quote currency, so a quote of 7.8000 means one euro buys 7.8000 offshore yuan. A rising price signals the euro strengthening against the renminbi, a falling one the opposite. You trade it as a forex CFD, going long when you expect the euro to gain and short when you expect it to lose, instead of dealing in the currencies directly. Pips sit at the fourth decimal place, and your profit or loss is those pips times the size of your trade.

This pair straddles two policy worlds. On one side the European Central Bank sets eurozone rates; on the other the People's Bank of China guides the renminbi through a daily reference rate and active management, even in the offshore market. China-eurozone trade ties and the broader direction of the yuan therefore weigh heavily, and because the offshore renminbi can move more freely than its onshore counterpart, the pair can react quickly to shifts in Chinese policy signals.