This article examines how European Central Bank (ECB) communications with markets influence stock prices and exchange rates in the Euro area. European countries introduced common currency, the euro, in 1999 and an integrated monetary policy has been implemented. Monetary policy became difficult as each country has its own economic conditions and variety of market participants; however, heavy dependence on monetary policy occurs as the fiscal condition of each country is very severe. At present, ECB policy announcements effectively impact future interest rates, stock prices, and exchange rates via future interest rates. However, impacts on stock prices and exchange rates have not been significant. The time span of the policy is short. Moreover, unexpected shocks in unemployment data cause significant movement in exchange rates.