On the right, the Alternative for Germany (AfD) party, which has been fighting Merkel's open border policies and opposing the ongoing Islamist leaning shift in their nation, outperformed their poll numbers and took roughly 13%.
He vowed to take his party, the junior partner in Merkel's outgoing "grand coalition" of Germany's traditionally dominant parties, into opposition.
"Flanked by the desire (of voters) for a CDU-CSU led national government, the CDU-CSU also benefited from the work and reputation of a chancellor who provides stability and leadership in an economically-strong Germany and a globally fragile environment", the Mannheim-based polling group said.
The euro slipped on Monday following the German election that saw Angela Merkel win a fourth term but with a worse-than-expected result as her party didn't get enough votes to form a majority government.
By contrast, Merkel's competitor Martin Schulz and his centre-left Social Democratic Party (SPD) suffered record losses.
UKIP's interim leader has congratulated the far-right Alternative für Deutschland (AfD) party for winning seats in Germany's parliament on Sunday.
The AfD did particularly well in co-leader Frauke Petry's home region of Saxony, an east German state which borders Poland and the Czech Republic. Reports have already emerged the FDP party are set to be a thorn in the side for both Angela Merkel and could be a real problem for the Euro.
Merkel prevails in German elections, but emerges with less support than Trump has in US
The AfD denies it is a Nazi party.
Such a coalition - which has never been tried at the federal level - includes the CDU/CSU, the liberal, business-friendly Free Democrats (FDP) - who are returning to parliament after a four-year hiatus with 80 seats - and the Greens (67 seats).
The implosion of Germany's Social Democratic Party in the national elections is the big news from Berlin.
"We should expect a lot of ambiguity, even hypocrisy, when it comes to climate policy", Oliver Geden, a policy expert with the German Institute for worldwide and Security Affairs in Berlin, tells Nature.
After the election result, Mrs Merkel said: "Obviously we have a new challenge ahead of us and that's the presence of the AfD in the German parliament".
They say the AfD can not undermine secular governance in Germany.