Hey guys!
How I resolved the jumping cursor issue is quite different from all the other suggestions I read here so I thought I'd let you know in my case it was caused by a faulty battery.
After weeks of using my MackBook without any trouble, my cursor suddenly started acting strange. Typing would become increasingly difficult during user sessions, with text being selected, replaced and deleted at random. It would also take increasingly long for text to appear on the screen after having typed it.
After consulting a Mac service desk, it turned out my battery (which had already stopped functioning a good while back) was slightly deformed, sort of bulging upward. Since it sits directly underneath the trackpad it therefore started to physically interfere with the trackpad and possibly the entire keyboard (since it is one big unit) from down below.
Resolution: replace the battery or just leave it out for the time being!
Hope this helps!
This was exactly the problem for me. Thanks for the help!