David Lea, a senior analyst for Europe at Control Risks, summed up the mood regarding Merkel's comments when he told CNBC her speech was "absolutely masterful in tone and execution, while not really saying very much. Or perhaps it wasn't – the only reaction everyone seems to behaving is that it was a masterpiece of saying lots while actually saying nothing."
Carsten Nickel, senior vice president at Teno Intelligence,said that it was clear Merkel was going to disappoint Cameron's high expectations.
(Read more: UK upsets Germany over key EU speech)
"Merkel is generally sympathetic to the British agenda of strengthening member states and - more specifically in the face of EU Eastern enlargement - limiting access to benefits for foreigners," he said.
However, "From Merkel's side, the appetite for outright treaty change is extremely limited these days. With the Eurozone crisis broadly under control due to the ECB's OMT programme, opening up the package of European treaties and agreements - and having to lobby for political backing in Germany afterwards - is something that the super-pragmatic German chancellor is eager to avoid."
Once again, David Cameron will be hoping the Germans can lend a hand in negotiating the U.K.'s place within the European community.
Nicholas Spiro, the managing director of Spiro Sovereign Strategy said Cameron was clearly "desperate" to obtain German support for a renegotiated EU treaty ahead of a possible 2017 referendum, but Merkel's speech did not help.
"She's made it clear that there can be no reopening of the EU treaty and, in any case, is taking a wait-and-see approach when it comes to the U.K., as it's still unclear what the outcome of next year's election is going to be," he said.
—By CNBC's Kiran Moodley. Follow him on Twitter