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In my 1990 745, i had an intermittent speedo problem. constantly jumping, sometimes not working at all. i started at the dash. BAD IDEA. chased my tail for a week in the cold before actually looking at the speedometer wiring from the sensor. the PO was a dingbat and clipped off the OEM connector to the sensor and crimped on some shove-on connector doo-hickees. i pulled the sensor, cleaned it up a but, adjusted the connector thingamerbobbies plugged em back in and fwabam, problem solved, needle sits mighty steady ever since that day. i gave myself a smack in the face for my wasted time and told myself to Keep it Simple, Stupid. start at the sensor, then work your way up.
as a side effect, it turned my ABS dash light off as well. (maybe the two are connected?)
but its likely in your cluster. boo.
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