Are you the type of person who can't stand watching foreign exchange news on TV? If so, then don't worry; you're not alone. You're not the only creature on the planet who struggles to understand the crazy language that the forex industry uses. No, it's not gibberish and definitely not alien talk. Those are real words that, surprisingly, a certain group of people understand.

Albeit its significance, it still seems to be almost impossible for a fifth-grader to digest anything printed on a forex paper. The jargon is just too technical and we are bombarded with words that we don't know which specific species of marsupials produce sounds like forex newsreaders. To help you absorb the forex language, here are some tips that will make you understand foreign exchange articles a lot better and help you with keeping up to date with the business world in general.

• The US dollar is the dominant currency in the world markets and many people use it as the currency to compare the value of their local currency to. When the local news tells you that the US dollar is weaker, softer or lower, or has depreciated, this means that you will be getting more money for every dollar you have. When the dollar is stronger, firmer or higher, or has appreciated, dollar earners get pissed.

• Forex news also uses colorful verbs. It doesn't just say that the value of a currency increases or decreases. If something is reduced in value, you'll find these words all over the article: tumble, knock, drop, slide, plunge, go on a downward trend and many others. The opposite goes for: rise, lift, edge up, improve, recover, rebound and on an upward trend.

Forex news works like business codes, giving you an idea of what to do with your money. Here are some examples of how to decipher them:

• US dollar is outperformed by the euro. Translation: Buy more euros with your dollars. Dollar earners are not happy.

• US dollar hits all time lows against the British pound. Translation: Now is the best time to buy euros with your dollars.

• Australian dollar is expected to fall after Christmas. Translation: Exchange your Australian dollars with US dollars before Christmas. (For more information on Australian Dollars, read The Guide to Australian Currency)

• More unwinding of excessive short US dollar positions is expected. Translation: Currency dealers are back to buying dollars.

• Authorities create opportunities to induce speculators in going short on the dollar. Translation: Currency dealers invested in other currencies while lessening their dollar hoard.

Why is it important to be aware of the movements in currency markets anyway? The truth is, foreign exchange has a massive impact on our lives. From import costs to debt servicing to money transfers, the world revolves with the way currencies move and investors buy and sell stocks (Learn how are stocks and bonds sold).