Swiss exports fell in June, weighed down by one less working day compared to the prior year period, while exports of watches, chemicals and machinery dropped, the Federal Customs Office said. Exports from Switzerland fell by a real 5.5 percent in June to 16.707 billion Swiss francs ($17.70 billion). Imports fell 6.5 percent to 13.975 billion francs. Exports of pharmaceuticals and chemicals, the country's biggest export category, fell 5.8 percent while machines and electronic devices were down 7.4 percent and watch exports dropped 4.0 percent. Swiss exports have been supported by a cap the central bank imposed on the soaring franc in 2011, but have suffered in recent months from sluggish demand in Europe, the country's biggest trading partner. The Swiss National Bank in June said it remains sufficiently concerned about the strength of the franc and the risks to its economy to stick to its cap on the safe-haven currency. However, June trade pointed to a brightening of demand from Europe, as exports to the bloc inched up 0.9 percent after posting a fall of 1.1 percent in May. "Generally speaking, what we have seen recently in the euro zone is that business surveys have improved, especially from the periphery and this suggests a slightly better outlook for the third quarter for exports," said Maxime Botteron at Credit Suisse. "Improved business surveys in the United States and United Kingdom should also support demand for Swiss exports," he said. Exports to Asia, where Swiss watches are particularly popular, fell 6.6 percent in June. The trade surplus widened to 2.732 billion francs in June from a revised 2.123 billion a month earlier. A survey of analysts by the ZEW economic research institute on Wednesday showed the SNB may scrap its 1.20 per euro lid on the franc within the next two years - and probably within a year. (Reuters)