Calculation of capital gains in foreign account

Hello,

I am a US citizen living in the EU and have started investing. I have opened a local account, whose base currency is EUR. I have invested in foreign stocks, also labelled in EUR. I would like to exit one position at a slight loss of a couple of dollars. However, in the meantime, the euro has appreciated against the dollar, which means I will have more dollars after exiting this position than I had to pay when entering it, although all payments are directly made in euros.

My question therefore is the following: should I report this as a capital loss (which is the case in euros, the currency in which the value of the asset is listed) or a capital gain (considering the euro appreciation in the meantime)?

Thanks a lot for your kind help!

Roger

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