As always Wikipedia comes to the rescue! <A HREF="http://en.wikipedia.org/wiki/LIBOR" target="_blank">http://en.wikipedia.org/wiki/LIBOR</A> I beleive you will find the answers to your questions there. I just started studying this stuff. I know for a fact that forward rates are very accurate predictors of where the currency is gonna go. (especially the AUD) gnite ... gotta get some sleep to wake up for the GBP retail sales.