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The speed signal for the speedometer and the odometer travels thru the ABS unit.
When the ABS unit fails it turns the ABS light ON, and if you drive it like that long enough, the speedometer and odometer will start acting funny and sometimes the check engine light will turn ON.
All the ABS control units (Installed on 96 and newer 850, 70 series and S80 models) will eventually fail after they reach 65,000 miles or 5 years. The average is 85,000 miles and/or 6 years for failures.
A dealer will charge from $60.0 to $120.00 to diagnose the problem and about 95% of the cases the mechanic will recommend to replace the ABS control unit.
Here's more information on this issue and a replacement alternative.
Vitor's Volvo ABS website
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