A forward rate is not a forecast. It is spot adjusted for the interest rate gap between two currencies. This shows where that forward comes from, what it costs you, and how far spot has to move before the hedge pays off.
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What if spot moves? value of your exposure at maturity, in quote currency
How the numbers are built. Forward = Spot × (1 + rquote × t) ÷ (1 + rbase × t), the covered interest parity formula with simple money-market rates. The higher-rate currency always trades at a forward discount — that discount is the "cost" of hedging a receivable in the lower-rate currency, and it is exactly the interest you would have earned by borrowing one currency and depositing the other. If your bank's quote differs from the parity forward, the gap is spread, liquidity or a genuine basis; the tool shows it in points and as an implied rate.