: Implied appreciation of a currency I have a very specific question in regards to a forward calculation. The USDEUR spot rate today is 0.759503. Libor and Euribor forward rates for the NeXT year are as follows: Fwd 3m Libor

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Implied appreciation of a currency
I have a very specific question in regards to a forward calculation. The USDEUR spot rate today is 0.759503. Libor and Euribor forward rates for the NeXT year are as follows:

Fwd 3m Libor

0.00288
0.00283
0.00321
0.00348

Fwd 3m EUROIBOR

0.00218
0.00190
0.00259
0.00310

I am told that the implied appreciation of the EUR is 32 bp, which i do not understand. When i calculate it using interest rate parity i only get approx. 6bp.

Can anyone help?

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