Wassup Ben, long time no talk.
Right now the Euro is strong, the dollar is weak, quite simple.
Make use of it - earn as much as possible in Euros, spend in Dollars.
Translating to our business:
Work the profitable EU countries, translate your sites into the proper languages (by locals, there is nothing worse than a bad translation - talk about lost consumer trust) - have the right billing (direct debit mostly, talk to your billing provider or contact local billing providers in these countries - they already have it *hint*) and use GEO-IP, it's been around for so long and it's still so under-valued and under-used it's not funny anymore.
Do some testing once you think you're finished, then locate and get all the appropriate traffic you can get your hands on. (either buy, or make deals with webmasters)
Pay your labor / workers in USD and if possible earn as much in EUR and spend as much USD as you can...
Personally, I've stopped concentrating on the US porn market quite some time ago and made the switch to earn most of my income in EUR, otherwise I'd be taking a heavy hit now I guess.
If life gives you lemons... make lemonade
P.S.: DO NOT flood the EU Market with FREE CONTENT - you don't need it to sell stuff here
Thanx