One month ago, the indirect spot exchange rate is 0.55 Pound sterling per US$. Now, the spot exchange rate is $1.6 per Pound. Based on this information, which of the following statement is correct?

• A. Pound sterling is depreciating against US $
• B. US$ is always depreciating against Pound sterling
• C. US $ is depreciating against Pound sterling
• D. US$ and Pound sterling are both appreciating
• E. US$ is expected to both appreciate and depreciate against Pound sterling