Do you have any advice to limit this negative effect ? I think the obvious thing to do is quitting adsense for a 100% European ad system ?
Say you have a contract for $10000 USD due 6 months from now and the EUR/USD rate is $1.40 when you signed the contract. If the USD falls to 1.5 in those 6 months, you've lost ~7% on that contract, but if it stregthens to 1.3, then you've made a free ~7.5%.
Since you just want to make the contract and not play on the forex market, what you do is you open up a currency trading account and take the exact opposite position to the one in your contract. In your contract you lose money if the USD falls, so in your hedge, you open up a short position on the USD, such that you make the exact same money that you lost on the contract.
So once you've signed the contract, take a $10000 short position on the EUR/USD pair. If the USD weakens, you lose from the hedge, but gain from the contract, if the USD strengthens, you lose from the contract but profit from the hedge, so there is no risk to you no matter where the currencies go.
The downside is that you need the same amount of money to hedge as the amount you're expecting. One way to get around this is to use a leveraged trading account, however this restricts the amount of fluctuation your hedge can handle before getting a margin call - for example if you use a 5:1 leveraged account (that is, use $2000 to trade a $10000 position), your hedge will protect you against swings of close to 20 cents. So depending on how much money you have available to hedge and the amount of fluctuation you want to be protected against, you can choose how much leverage you want. (here's a tool to estimate it: http://www.fxtrade.com/tools/fxcalculators/margin_call_calcu...)
The good news is that with today's forex platforms, this is perfectly accessible/doable for any sized business/personal transactions.
Note: I do work for OANDA, but I'm just a developer there. I posted since I really do think currency hedging is neat. :)
With the Dollars not being exchanged, I'm building up a travel fund and not losing value (apart from US inflation). I go to the USA once in a while, and the earnings pay for pretty much everything I do there. World-wide, there are a few currencies pegged to the US$, so the money can be used for traveling to those countries too.
In short, you'll only have a problem if you want to use the earnings in Europe. Otherwise, you can be very creative with it.
A related note: I sometimes wish Paypal would let me link my US$ account to my Paypal account. That would make life so much easier.
Pierre
Will see if I earn enough to travel after breakeven (and I don't think I'm going to the US soon).
One thing I forgot to mention in my original reply: if you keep the US$ as is, maybe you can use them to pay for online services like hosting and stuff. It would be neat if you could like a currency credit card to help that along.
Pierre
Good luck, I feel your pain.
http://basketweavingtips.blogspot.com/2007/09/underwater-bas...
Not to mention more advertisers creates competition.
We quit advertising on Google a couple of months ago due to this same issue: it became virtually impossible to bid on any word that has a corelation to "voip".